AAON (AAON) 10-Q 7 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	0-18953
Entity Registrant Name	AAON, INC.
Entity Central Index Key	0000824142
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	87-0448736
Entity Address, Address Line One	2425 South Yukon Ave.,
Entity Address, City or Town	Tulsa,
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74107
City Area Code	918
Local Phone Number	583-2266
Title of 12(b) Security	Common Stock
Trading Symbol	AAON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		53,199,537

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 10,738	$ 2,859
Restricted Cash	530	628
Accounts receivable, net of allowance for credit losses of $682 and $549, respectively	134,073	70,780
Income tax receivable	1,941	5,723
Inventories, net	176,888	130,270
Contract assets	9,592	5,749
Prepaid expenses and other	2,302	2,071
Total current assets	336,064	218,080
Property, plant and equipment:
Land	8,537	5,016
Buildings	166,193	135,861
Machinery and equipment	336,123	318,259
Furniture and fixtures	27,814	23,072
Total property, plant and equipment	538,667	482,208
Less: Accumulated depreciation	242,213	224,146
Property, plant and equipment, net	296,454	258,062
Intangible assets, net	65,507	70,121
Goodwill	81,892	85,727
Right of use assets	1,684	16,974
Note receivable	4,242	1,216
Total assets	785,843	650,180
Current liabilities:
Accounts payable	48,613	29,020
Accrued liabilities	61,780	50,206
Contract liabilities	31,791	7,542
Total current liabilities	142,184	86,768
Revolving credit facility, long-term	76,291	40,000
Deferred tax liabilities	31,430	31,993
Other long-term liabilities	5,642	18,843
New market tax credit obligation (a)	6,438	6,406	[1]
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued	0	0
Common stock, $.004 par value, 100,000,000 shares authorized, 53,214,971 and 52,527,985 issued and outstanding at September 30, 2022 and December 31, 2021, respectively	213	210
Additional paid-in capital	87,949	81,654
Retained earnings	435,696	384,306
Total stockholders' equity	523,858	466,170
Total liabilities and stockholders' equity	$ 785,843	$ 650,180
[1] (a) Held by variable interest entities (Note 17)

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Stockholders' equity:
Allowance for doubtful accounts	$ 682	$ 549
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.004	$ 0.004
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	53,214,971	52,527,985
Common stock, shares outstanding (in shares)	53,214,971	52,527,985

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 242,605	$ 138,571	$ 634,190	$ 398,235
Cost of sales	177,014	102,552	475,159	286,952
Gross profit	65,591	36,019	159,031	111,283
Selling, general and administrative expenses	28,891	15,897	78,880	47,488
Gain on disposal of assets	0	(15)	(12)	(15)
Income from operations	36,700	20,137	80,163	63,810
Interest expense, net	(954)	(10)	(1,694)	(11)
Other income (expense), net	54	(19)	295	37
Income before taxes	35,800	20,108	78,764	63,836
Income tax provision	8,327	4,527	17,286	11,264
Net income	$ 27,473	$ 15,581	$ 61,478	$ 52,572
Earnings per share:
Basic (in dollars per share)	$ 0.52	$ 0.30	$ 1.16	$ 1
Diluted (in dollars per share)	$ 0.51	$ 0.29	$ 1.14	$ 0.98
Weighted average shares outstanding:
Basic (in shares)	53,185,324	52,420,711	53,029,284	52,392,300
Diluted (in shares)	53,958,715	53,546,513	53,921,865	53,664,997

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings
Balance (in shares) at Dec. 31, 2020		52,225
Balance at Dec. 31, 2020	$ 350,865	$ 209	$ 5,161	$ 345,495
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	52,572			52,572
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		438
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	14,573	$ 2	14,571
Share-based compensation	8,784		8,784
Stock repurchased and retired (in shares)		(243)
Stock repurchased and retired	(16,551)	$ (1)	(16,550)	0
Dividends net of refunds for cancelled cash dividends	(9,964)			(9,964)
Balance (in shares) at Sep. 30, 2021		52,420
Balance at Sep. 30, 2021	400,279	$ 210	11,966	388,103
Balance (in shares) at Jun. 30, 2021		52,416
Balance at Jun. 30, 2021	383,726	$ 210	10,998	372,518
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,581			15,581
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		77
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	2,725	$ 0	2,725
Share-based compensation	2,991		2,991
Stock repurchased and retired (in shares)		(73)
Stock repurchased and retired	(4,748)	$ 0	(4,748)
Dividends net of refunds for cancelled cash dividends	4			4
Balance (in shares) at Sep. 30, 2021		52,420
Balance at Sep. 30, 2021	400,279	$ 210	11,966	388,103
Balance (in shares) at Dec. 31, 2021		52,528
Balance at Dec. 31, 2021	466,170	$ 210	81,654	384,306
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	61,478			61,478
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		843
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	10,990	$ 3	10,987
Share-based compensation	10,229		10,229
Stock repurchased and retired (in shares)		(156)
Stock repurchased and retired	(8,921)	$ 0	(8,921)
Contingent consideration (Note 3)	(6,000)		(6,000)
Dividends net of refunds for cancelled cash dividends	(10,088)			(10,088)
Balance (in shares) at Sep. 30, 2022		53,215
Balance at Sep. 30, 2022	523,858	$ 213	87,949	435,696
Balance (in shares) at Jun. 30, 2022		53,127
Balance at Jun. 30, 2022	490,506	$ 213	82,078	408,215
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,473			27,473
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)		124
Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)	4,605	$ 0	4,605
Share-based compensation	3,321		3,321
Stock repurchased and retired (in shares)		(36)
Stock repurchased and retired	(2,055)		(2,055)	0
Dividends net of refunds for cancelled cash dividends	8			8
Balance (in shares) at Sep. 30, 2022		53,215
Balance at Sep. 30, 2022	$ 523,858	$ 213	$ 87,949	$ 435,696

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating Activities
Net income	$ 61,478	$ 52,572
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	25,624	22,532
Amortization of debt issuance costs	32	31
Amortization of right of use assets	191	0
Provision for credit losses on accounts receivable, net of adjustments	300	0
Provision for excess and obsolete inventories	1,380	378
Share-based compensation	10,229	8,784
Gain on disposal of assets	(12)	(15)
Foreign currency transaction loss (gain)	42	(1)
Interest income on note receivable	(17)	(19)
Deferred	(563)	2,766
Changes in assets and liabilities:
Accounts receivable	(63,593)	(11,369)
Income tax receivable	3,782	2,588
Inventories	(47,998)	(22,712)
Contract assets	(3,843)	0
Prepaid expenses and other	(70)	937
Accounts payable	18,616	16,390
Contract liabilities	24,249	0
Deferred revenue	730	316
Accrued liabilities and other long-term liabilities	12,857	1,525
Net cash provided by operating activities	43,414	74,703
Investing Activities
Capital expenditures	(41,586)	(42,636)
Cash paid for building (see Note 3)	(22,000)	0
Cash paid in business combination, net of cash acquired	(249)	0
Proceeds from sale of property, plant and equipment	12	19
Principal payments from note receivable	41	41
Net cash used in investing activities	(63,782)	(42,576)
Financing Activities
Borrowings under revolving credit facility	151,103	0
Payments under revolving credit facility	(114,812)	0
Principal payments on financing lease	(115)	0
Stock options exercised	10,990	14,573
Repurchase of stock	(7,943)	(15,014)
Employee taxes paid by withholding shares	(978)	(1,537)
Cash dividends paid to stockholders	10,096	9,964
Net cash provided by (used in) financing activities	28,149	(11,942)
Net increase in cash, cash equivalents and restricted cash	7,781	20,185
Cash, cash equivalents and restricted cash, beginning of period	3,487	82,288
Cash, cash equivalents and restricted cash, end of period	$ 11,268	$ 102,473

General

General	9 Months Ended
	Sep. 30, 2022
Basis of Presentation and Significant Accounting Policies [Abstract]
General	General Basis of Presentation AAON, Inc. is a Nevada corporation which was incorporated on August 18, 1987. Our operating subsidiaries include AAON, Inc., an Oklahoma corporation, AAON Coil Products, Inc., a Texas corporation, and BasX, Inc. (dba BasX Solutions), an Oregon corporation (collectively, the “Company”). The accompanying unaudited consolidated financial statements of AAON, Inc. and our operating subsidiaries, all of which are wholly-owned, have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”). On December 10, 2021, we closed on the acquisition of all of the issued and outstanding equity ownership of BasX, LLC, doing business as BasX Solutions ("BasX") (Note 3). We began including the results of BasX’s operations in our consolidated financial statements on December 11, 2021. On December 29, 2021, BasX, LLC converted to a C-Corporation, BasX, Inc., and is subject to income tax. Our financial statements consolidate all of our affiliated entities in which we have a controlling financial interest. Because we hold certain rights that give us the power to direct the activities of two variable interest entities ("VIEs") (Note 17) that most significantly impact the VIEs economic performance, combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, we have a controlling financial interest in those VIEs. These financial statements have not been audited by the Company's independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2021 is derived from audited consolidated financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The financial statements reflect all adjustments (all of which are of a normal recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of the results that may be expected for a full year. Certain disclosures have been condensed in or omitted from these consolidated financial statements. The accompanying unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. All intercompany balances and transactions have been eliminated in consolidation. We are engaged in the engineering, manufacturing, marketing, and sale of premium air conditioning and heating equipment consisting of standard, semi-custom, and custom rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, inventory reserves, warranty accrual, workers' compensation accrual, medical insurance accrual, income taxes, useful lives of property, plant, and equipment, estimated future use of leased property, share-based compensation, revenue percentage of completion and estimated costs to complete. Actual results could differ materially from those estimates. Change in Estimate During the first quarter of 2022, a review of the Company’s useful lives for certain sheet metal manufacturing equipment at our Longview, Texas location resulted in a change in estimate that increased the useful lives from between ten and twelve years to fifteen years. This determination was based on recent and estimated future production levels as well as management’s knowledge of the equipment and historical and future use of the equipment. The change in estimate was made prospectively and resulted in a decrease to depreciation expense within cost of sales on our consolidated statements of income of $1.8 million during the nine months ended September 30, 2022. Impact of COVID-19 Pandemic The magnitude of the impact of COVID-19 remains unpredictable and we, therefore, continue to anticipate potential supply chain disruptions, employee absenteeism, and additional health and safety costs related to the COVID-19 pandemic that could unfavorably impact our business. We had continuous operations during the nine months ended September 30, 2022. Although future disruptions and costs are expected to be temporary, there is significant uncertainty around the duration and overall impact to our business operations. We are continually monitoring the progression of the pandemic, including new COVID-19 variants, and its potential effect on our financial position, results of operations and cash flows. Inflation and Labor Market We have witnessed increases of our raw material prices, especially in copper and steel, which appear to be a residual effect of COVID-19, and we continue to make strategic purchases of materials when we see opportunities. We have managed the increase in the cost of raw materials through price increases for our products. We have also experienced supply chain challenges related to specific manufacturing parts, which we have managed through our strong existing vendor relationships, expanding our list of vendors, and our favorable liquidity position. Additionally, we continue to experience challenges in a tight labor market, especially the hiring of both skilled and unskilled production labor. In July 2021, we increased starting wages for our production workforce by 7.0%. We also put a cost of living increase of 3.5% in place in October 2021 for all employees below the Director level. In March 2022, we awarded annual merit raises resulting in a 3.0% increase in overall wages. We will continue to implement human resource initiatives to retain and attract labor to further improve productivity and production efficiencies. Despite efforts to mitigate the impact of inflation, supply chain issues, and the tight labor market, future disruptions, while temporary, could negatively impact our financial position, results of operations and cash flows. First Quarter 2021 Planned Maintenance and Adverse Weather During the fourth quarter of 2020, we made the strategic decision to shut down our Tulsa, OK and Longview, TX manufacturing facilities to perform planned and necessary maintenance during the last week of December 2020 as well several days in early January 2021. In February 2021, record-breaking winter storms affected Oklahoma and Texas, causing sustained below freezing temperatures, hazardous driving conditions, rolling blackouts, water main breaks, and a host of other weather related issues. In addition to significant absenteeism as a result of employees being unable to travel to and from work due to inadequate transportation and/or hazardous road conditions, the Company made the decision to shut down the Tulsa, OK and Longview, TX plants for several days. This decision was based on the expected employee absenteeism as well as the expected rolling blackouts caused by the increased demand on the electrical and natural gas power grids. WH Series and WV Series Water Source Heat Pump Units As part of the normal course of business, management is continually monitoring the profitability of the Company's various product lines. During the third quarter of 2022, management made the decision to no longer produce our small packaged geothermal/water-source heat pump units consisting of the WH Series horizontal configuration and WV Series vertical configuration, from one-half to 12 1/2 tons ("WH/WV"). These WH/WV units are produced solely out of the AAON Oklahoma facility. Production of the remaining WH/WV backlog is expected to continue through the first quarter of 2023. A majority of the long-lived assets used in the production of the WH/WV units will be immediately reallocated to other product production, providing us additional manufacturing capacity with minimal costs. The workforce from the WH/WV production line will also be reallocated to other product production lines. Management has identified some related components and parts that cannot be used in other products or sold through our parts business; therefore, we have increased our provision for excess and obsolete inventory (Note 6), within cost of sales on our consolidated statements of income, by approximately $1.0 million during the three and nine months ended September 30, 2022. Management does not believe this decision will have a significant future impact on the AAON Oklahoma reportable segment or the Company's overall operations, financial results and cash flows. Accounting Policies A comprehensive discussion of our critical accounting policies and management estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2021. Fair Value Measurements The carrying amounts of cash and cash equivalents, receivables, accounts payable, and accrued liabilities approximate fair value because of the short-term maturity of the items. The carrying amount of the Company’s revolving line of credit, and other payables, approximate their fair values either due to their short term nature, the variable rates associated with the debt, or based on current rates offered to the Company for debt with similar characteristics. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels: • Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. • Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. • Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets, contingent consideration, and goodwill acquired in a business combination. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. Definite-Lived Intangible Assets Our definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations (Note 3). We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review. Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. At September 30, 2022 $50.3 million of goodwill is deductible for income tax purposes. Our indefinite-lived intangible assets consist of trademark and trade names. Goodwill and indefinite-lived intangible assets are not amortized, but instead are evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed or included within the Company's Annual Report on Form 10-K for the year ended December 31, 2021, were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The following tables show disaggregated net sales by reportable segment (Note 20) by major source, net of intercompany sales eliminations. Three Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BasX Total (in thousands) Rooftop Units $ 154,171 $ — $ — $ 154,171 Condensing Units — 12,720 — 12,720 Air Handlers — 14,380 2,211 16,591 Outdoor Mechanical Rooms 58 118 — 176 Cleanroom Systems — — 15,283 15,283 Data Center Cooling Solutions — — 14,884 14,884 Water-Source Heat Pumps 3,236 2,445 — 5,681 Part Sales 15,724 — 176 15,900 Other 2 5,980 841 378 7,199 $ 179,169 $ 30,504 $ 32,932 $ 242,605 Three Months Ended September 30, 2021 AAON Oklahoma AAON Coil Products BasX 1 Total (in thousands) Rooftop Units $ 103,900 $ — $ — $ 103,900 Condensing Units 120 6,677 — 6,797 Air Handlers — 6,279 — 6,279 Outdoor Mechanical Rooms 179 29 — 208 Water-Source Heat Pumps 2,536 2,679 — 5,215 Part Sales 12,102 — — 12,102 Other 2 3,299 771 — 4,070 $ 122,136 $ 16,435 $ — $ 138,571 Nine Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BasX Total (in thousands) Rooftop Units $ 414,493 $ — $ — $ 414,493 Condensing Units 242 33,645 — 33,887 Air Handlers — 35,358 6,495 41,853 Outdoor Mechanical Rooms 612 488 — 1,100 Cleanroom Systems — — 31,568 31,568 Data Center Cooling Solutions — — 38,589 38,589 Water-Source Heat Pumps 8,098 6,596 — 14,694 Part Sales 39,797 — 507 40,304 Other 2 13,275 3,106 1,321 17,702 $ 476,517 $ 79,193 $ 78,480 $ 634,190 Nine Months Ended September 30, 2021 AAON Oklahoma AAON Coil Products BasX 1 Total (in thousands) Rooftop Units $ 298,695 $ — $ — $ 298,695 Condensing Units 762 19,868 — 20,630 Air Handlers — 19,958 — 19,958 Outdoor Mechanical Rooms 820 363 — 1,183 Water-Source Heat Pumps 8,993 7,312 — 16,305 Part Sales 30,325 — — 30,325 Other 2 8,783 2,356 — 11,139 $ 348,378 $ 49,857 $ — $ 398,235 1 BasX was acquired by the Company on December 10, 2021. As the BasX segment was not applicable for the three and nine months ended September 30, 2021, it has been excluded from the tables for those periods. 2 Other sales include freight, extended warranties and miscellaneous revenue. Due to the highly customized nature of many of the Company’s products and each product not having an alternative use to the Company without significant costs to the Company, the Company recognizes revenue over time as progress is made toward satisfying the performance obligations of each contract. The Company has formal cancellation policies and generally does not accept returns on these units. Contract costs include direct materials, direct labor, installation, freight and delivery, commissions and royalties. Other costs not related to contract performance, such as indirect labor and materials, small tools and supplies, operating expenses, field rework and back charges are charged to expense as incurred. Provisions for estimated losses on contracts in progress are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income, and are estimated and recognized by the Company throughout the life of the contract. The aggregate of costs incurred and income recognized on uncompleted contracts in excess of billings is shown as a contract asset within our consolidated balance sheets, and the aggregate of billings on uncompleted contracts in excess of related costs incurred and income recognized is shown as a contract liability within our consolidated balance sheets. For all other products that are part sales or standardized units, the Company recognizes revenue, presented net of sales tax, when it satisfies the performance obligation in its contracts. As the primary performance obligation in such a contract is delivery of the requested manufactured equipment, we satisfy the performance obligation when the control is passed to the customer, generally at time of shipment. Final sales prices are fixed based on purchase orders. Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates. Sales of our products are moderately seasonal with the peak period being May-October of each year. Product Warranties The Company also sells extended warranties on parts for various lengths of time ranging from six months to 10 years. Revenue for these separately priced warranties is deferred and recognized on a straight-line basis over the separately priced warranty period. Representatives and Third Party Products We are responsible for billings and collections resulting from all sales transactions, including those initiated by our independent manufacturer representatives (“Representatives”). Representatives are national companies that are in the business of providing HVAC units and other related products and services to customers. The end user customer orders a bundled group of products and services from the Representative and expects the Representative to fulfill the order. These additional products and services may include controls purchased from another manufacturer to operate the unit, start-up services, and curbs for supporting the unit (“Third Party Products”). All are associated with the purchase of a HVAC unit but may be provided by the Representative or another third party. Only after the specifications are agreed to by the Representative and the customer, and the decision is made to use an AAON HVAC unit, will we receive notice of the order. We establish the amount we must receive for our HVAC unit (“minimum sales price”), but do not control the total order price that is negotiated by the Representative with the end user customer. The Representatives submit the total order price to us for invoicing and collection. The total order price includes our minimum sales price and an additional amount which may include both the Representatives’ fee and amounts due for additional products and services required by the customer. The Company is considered the principal for the equipment we design and manufacture and records that revenue. The Company has no control over the Third Party Products to the end customer and the Company is under no obligation related to the Third Party Products. Amounts related to Third Party Products are not recognized as revenue but are recorded as a liability and are included in accrued liabilities on the consolidated balance sheet. The Representatives’ fee and Third Party Products amounts (“Due to Representatives”) are paid only after all amounts associated with the order are collected from the customer. The amount of payments to our Representatives were $10.8 million and $9.5 million for the three months ended September 30, 2022 and 2021, respectively. The amount of payments to our Representatives were $28.7 million and $34.5 million for the nine months ended September 30, 2022 and 2021, respectively.

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2022
Business Combinations [Abstract]
Business Combination	Business Combination On November 18, 2021, the Company entered into a membership interest purchase agreement (the “MIPA Agreement”) to acquire all of the issued and outstanding equity ownership of BasX, LLC, an Oregon limited liability company, doing business as BasX Solutions. We closed this transaction on December 10, 2021 for a purchase price of (i) $100.0 million payable in cash (not including working capital adjustments), and (ii) up to $80.0 million in the aggregate of contingent consideration payable in shares of the Company's common stock, par value $0.004 per share (the "Shares"). The $80.0 million of contingent consideration payable consists of $78.0 million payable to the former owners of BasX and $2.0 million payable to key employees of BasX whom are now employed by the Company. The potential future issuance of the Shares is contingent upon BasX meeting certain post-closing earn-out milestones during each of 2021, 2022, and 2023 under the terms of the MIPA Agreement. The Company funded the BasX acquisition cash portion of the purchase price and related transaction costs with cash on hand. Additionally, as a condition to closing, the Company entered into a real estate purchase agreement with BasX Properties, LLC, an affiliate of BasX, to acquire the principal real property and improvements utilized by BasX for an additional $22.0 million, subject to customary closing conditions and adjustments. The Company closed this real estate transaction on May 31, 2022, which terminated the related lease (Note 4). BasX specializes in the design, engineering and manufacturing of custom, energy efficient cooling solutions for the rapidly growing hyperscale data center market. BasX also designs and manufactures custom solutions for cleanroom environments for the bio-pharmaceutical, semiconductor, medical and agriculture markets, as well as custom, energy efficient air handlers and modular solutions for a vast array of markets. The acquisition of BasX brings the Company exposure to attractive end-markets into which the Company has historically had minimal exposure. The products BasX manufactures are highly engineered, customized products, fully complimenting AAON's existing business. We applied pushdown accounting, allowable under ASC 805 "Business Combinations," to "pushdown" our stepped-up basis in the assets acquired and liabilities assumed to BasX's subsidiary financial statements. The decision to apply pushdown accounting is irrevocable. Goodwill was calculated and recognized consistent with acquisition accounting, resulting in the pushdown of $78.7 million in goodwill. The following table presents the final allocation of the consideration paid to the assets acquired and liabilities assumed in the acquisition of BasX described above, which was still preliminary at December 31, 2021. The revisions indicated below were recorded during the first quarter of 2022. The revisions were the results of updates to our preliminary estimates and third party valuation models. The impact of such revisions on net income were not significant. Final Allocation Estimated Revisions (in thousands) Accounts receivable $ 13,699 $ 13,699 $ — Inventories 2,725 2,725 — Contract assets 7,635 7,635 — Prepaid expenses and other 341 341 — Property, plant and equipment 13,169 13,169 — Right of use assets 15,611 15,611 — Intangible assets 68,413 70,329 (1,916) Goodwill 78,663 82,498 (3,835) Accounts payable (9,388) (9,388) — Accrued liabilities (3,807) (3,807) — Contract liabilities (7,771) (7,771) — Lease liabilities (15,611) (15,611) — Contingent Consideration - shares of AAON, Inc. (60,000) (66,000) 6,000 Consideration paid $ 103,679 $ 103,430 $ 249 The Company recognized the following definite and indefinite-lived intangible assets as part of the acquisition of BasX: Final Allocation Estimated Revisions (in thousands) Definite-lived intangible assets Intellectual property $ 6,295 $ 6,479 $ (184) Customer relationships 47,547 48,684 (1,137) 53,842 55,163 (1,321) Indefinite-lived intangible assets Trademarks 14,571 15,166 (595) Total intangible assets acquired $ 68,413 $ 70,329 $ (1,916) Goodwill is the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. Goodwill represents a premium paid to acquire the skilled workforce and expanded market opportunities. Goodwill of $47.1 million was tax deductible upon the completion of the final allocation of consideration paid to the assets acquired and liabilities assumed. Future additional amounts of goodwill related to the contingent consideration may become tax deductible in the future if the earn out provisions of the MIPA Agreement are achieved. Pro Forma Results of Operations (unaudited) The operations of BasX have been included in our statements of income since the closing date on December 10, 2021. The following unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2021 are presented as if the combination had been made on January 1, 2021. (unaudited) Three months ended Nine months ended September 30, 2021 September 30, 2021 (in thousands, except per share data) Revenues $ 159,636 $ 452,635 Net income $ 17,257 $ 55,751 Earnings per share: Basic $ 0.33 $ 1.06 Dilutive $ 0.32 $ 1.04 These unaudited pro forma results include adjustments necessary in connection with the acquisition. The unaudited consolidated pro forma financial information was prepared in accordance with GAAP and is not necessarily indicative of the results of operations that would have occurred if the acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company. The unaudited pro forma results do not reflect events that either have occurred or may occur after the acquisition date, including, but not limited to, the anticipated realization of operating synergies in subsequent periods. These results also do not give effect to certain charges that the Company expects to incur in connection with the acquisition, including, but not limited to, additional professional fees and employee integration.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Leases The following table presents the balances by lease type: Balance Sheet Classification September 30, 2022 December 31, 2021 Operating Leases Right of use assets Right of use assets $ 1,684 $ 16,974 Current lease liability Accrued liabilities $ 522 $ 1,580 Noncurrent lease liability Other long-term liabilities $ 1,153 $ 15,467 Since 2018, we lease our manufacturing and office space used by our operations in Parkville, Missouri, which is classified as an operating lease. During the acquisition of BasX on December 10, 2021 (Note 3), we acquired various leases for plant/office space and equipment, which are classified as operating leases. Through May 2022, BasX's manufacturing and office facility in Redmond, Oregon was leased from a related party (Note 19). As as result of the purchase of the manufacturing and office facility on May 31, 2022 the lease was terminated. On June 1, 2022, the Company entered into a lease agreement for land and facilities in Tulsa, Oklahoma to support our manufacturing operations. During the second quarter of 2022, this lease was classified as a finance lease as the Company had the option to and was reasonably certain to purchase the underlying assets in 2023. However, during the third quarter of 2022, it was determined that the Company would no longer purchase the land or facility and terminate the lease due to unforeseen facility structural issues. As we currently expect to vacate this property in the next several months and terminate this lease we have reassessed our lease estimate and classified the remaining expected term of the lease as an operating lease. We do not expect the vacating of the leased property to have a significant effect on the Company's overall operations, financial results and cash flows.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable and the related allowance for credit losses are as follows: September 30, December 31, 2021 (in thousands) Accounts receivable $ 134,755 $ 71,329 Less: Allowance for credit losses (682) (549) Total, net $ 134,073 $ 70,780 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Allowance for credit losses: (in thousands) Balance, beginning of period $ 563 $ 518 $ 549 $ 506 Provisions for (recoveries of) expected credit 119 (12) 300 — losses, net of adjustments Accounts receivable written off, net of recoveries — (29) (167) (29) Balance, end of period $ 682 $ 477 $ 682 $ 477

Inventories

Inventories	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (“FIFO”) method. We establish an allowance for excess and obsolete inventories based on product line changes, the feasibility of substituting parts and the need for supply and replacement parts. The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows: September 30, December 31, 2021 (in thousands) Raw materials $ 171,230 $ 124,480 Work in process 2,739 3,049 Finished goods 5,984 4,528 Total, gross 179,953 132,057 Less: Allowance for excess and obsolete inventories (3,065) (1,787) Total, net $ 176,888 $ 130,270 Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 1,871 $ 2,726 $ 1,787 $ 3,261 Provision for (recovery of) excess and 1,232 86 1,380 378 obsolete inventories Inventories written off (38) (520) (102) (1,347) Balance, end of period $ 3,065 $ 2,292 $ 3,065 $ 2,292

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets Our intangible assets consist of the following: September 30, 2022 December 31, 2021 Definite-lived intangible assets (in thousands) Intellectual property $ 6,295 $ 6,479 Customer relationships 47,547 48,684 Less: Accumulated amortization (2,906) (208) Total, net 50,936 54,955 Indefinite-lived intangible assets Trademarks 14,571 15,166 Total intangible assets, net $ 65,507 $ 70,121 Amortization expense recorded in cost of sales is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Amortization expense $ 902 $ — $ 2,698 $ 38 Excluding the impact of any future acquisitions, the Company anticipates amortization expense to be $3.6 million for each of the years ending 2022 through 2026.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Supplemental disclosures: (in thousands) Interest paid $ 974 $ — $ 1,507 $ — Income taxes paid $ 3,086 $ 3,167 $ 14,067 $ 5,909 Non-cash investing and financing activities: Non-cash capital expenditures $ 306 $ (1,052) $ 985 $ (2,897)

Warranties

Warranties	9 Months Ended
	Sep. 30, 2022
Guarantees [Abstract]
Warranties	Warranties The Company has product warranties with various terms ranging from one year from the date of first use or 18 months for parts, data center cooling solutions, and cleanroom systems to 25 years for certain heat exchangers. The Company has an obligation to replace parts if conditions under the warranty are met. A provision is made for estimated warranty costs at the time the related products are sold based upon the warranty period, historical trends, new products, and any known identifiable warranty issues. Changes in the warranty accrual are as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Warranty accrual: (in thousands) Balance, beginning of period $ 14,381 $ 14,008 $ 13,769 $ 13,522 Payments made (2,196) (1,825) (5,094) (4,834) Provisions 3,046 1,272 6,556 4,767 Balance, end of period $ 15,231 $ 13,455 $ 15,231 $ 13,455 Warranty expense: $ 3,046 $ 1,272 $ 6,556 $ 4,767

Accrued Liabilities and Other L

Accrued Liabilities and Other Long-Term Liabilities	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued Liabilities and Other Long-Term Liabilities	Accrued Liabilities and Other Long-Term Liabilities Accrued liabilities were comprised of the following: September 30, December 31, 2021 (in thousands) Warranty $ 15,231 $ 13,769 Due to representatives 14,272 7,995 Payroll 10,599 8,423 Profit sharing 4,136 1,489 Workers' compensation 282 308 Medical self-insurance 1,362 1,943 Customer prepayments 3,029 5,931 Donations 200 438 Employee vacation time 5,810 4,362 Lease liability, short-term 522 1,580 Property taxes 2,221 1,787 Extended warranties, short-term 1,345 1,532 Other 2,771 649 Total $ 61,780 $ 50,206 Other long-term liabilities were comprised of the following: September 30, December 31, 2021 (in thousands) Long-term operating lease obligation $ 1,153 $ 15,467 Extended warranties 3,940 3,042 Long-term donations and other 549 334 Total $ 5,642 $ 18,843

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility On May 27, 2022, we amended our $100.0 million Amended and Restated Loan Agreement dated November 24, 2021 (“Revolver”), to provide for maximum borrowings of $200.0 million. As of September 30, 2022 and December 31, 2021, we had $76.3 million and $40.0 million outstanding under the Revolver, respectively. We have one standby letter of credit totaling $0.8 million as of September 30, 2022. Borrowings available under the Revolver at September 30, 2022 were $122.9 million. The Revolver expires on May 27, 2027. Any outstanding loans under the Revolver bear interest at the daily compounded secured overnight financing rate ("SOFR") plus the applicable margin. Applicable margin, ranging from 1.25% - 1.75%, is determined quarterly based on the Company's leverage ratio. The Company is also subject to letter of credit fees, ranging from 1.25% - 1.75%, and a commitment fee, ranging from 0.10% - 0.20%. The applicable fee percentage is determined quarterly based on the Company's leverage ratio. The weighted average interest rate on borrowings outstanding on our the Revolver was 3.5% and 2.5% for the three and nine months ended September 30, 2022, respectively. Fees associated with the unused portion of the committed amount are included in interest expense on our consolidated statements of income and were not material for the three and nine months ended September 30, 2022. If SOFR cannot be determined pursuant to the definition, as defined by the Revolver agreement, any outstanding affected loans will be deemed to have been converted into alternative base rate ("ABR") loans. ABR loans would bear interest at a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50%, or (c) daily simple SOFR for a one-month tenor in effect on such day plus 1.00%.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision (benefit) for income taxes consists of the following: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Current $ 8,763 $ 4,508 $ 17,849 $ 8,498 Deferred (436) 19 (563) 2,766 Income tax provision $ 8,327 $ 4,527 $ 17,286 $ 11,264 The provision for income taxes differs from the amount computed by applying the Federal statutory income tax rate before the provision for income taxes. The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of Federal benefit 5.0 3.4 4.7 3.0 Excess tax benefits (1.5) (2.2) (1.6) (6.0) Return to provision adjustments (0.4) 0.6 (0.5) — Other (0.8) (0.3) (1.7) (0.4) Effective tax rate 23.3 % 22.5 % 21.9 % 17.6 % On May 21, 2021, the State of Oklahoma enacted House Bill 2960, effectively reducing the corporate income tax rate in Oklahoma from 6% to 4%. This resulted in an overall reduction of our effective state income tax rate for the three and nine months ended September 30, 2021, net of Federal benefit. During the nine months ended September 30, 2022, the Company recorded an excess tax benefit of $1.3 million as compared to $3.8 million during the same period in 2021, a decrease of 67%. The decrease was primarily due to timing of stock option exercises as a result of our high stock price during the nine months ended September 30, 2021. We earn investment tax credits from the state of Oklahoma’s manufacturing property investment program. We use the flow-through method to account for investment tax credits earned on eligible tangible asset expenditures. Under this method, the investment tax credits are recognized as a reduction to our Oklahoma income tax expense in the year they are used. As of September 30, 2022, we have investment tax credit carryforwards of approximately $4.4 million. These credits have estimated expirations from the year 2038 through 2042. The Company's estimated annual 2022 effective tax rate, excluding discrete events, is approximately 25%. We file income tax returns in the U.S., state and foreign income tax returns jurisdictions. We are subject to U.S. income tax examinations for tax years 2018 to present, and to non-U.S. income tax examinations for the tax years 2017 to present. In addition, we are subject to state and local income tax examinations for the tax years 2017 to present. The Company continues to evaluate its need to file returns in various state jurisdictions. Any interest or penalties would be recognized as a component of income tax expense.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation On May 22, 2007, our stockholders adopted a Long-Term Incentive Plan (“LTIP”) which provided an additional 3.3 million shares that could be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance units and performance awards, in addition to the shares from the previous plan, the 1992 Plan. Under the LTIP, the exercise price of shares granted could not be less than 100% of the fair market value at the date of the grant. On May 24, 2016, our stockholders adopted the 2016 Long-Term Incentive Plan ("2016 Plan") which provides for approximately 8.9 million shares, comprised of 3.4 million new shares provided for under the 2016 Plan, approximately 0.4 million shares that were available for issuance under the previous LTIP that are now authorized for issuance under the 2016 Plan, approximately 2.6 million shares that were approved by the stockholders on May 15, 2018, and an additional 2.5 million shares that were approved by the stockholders on May 12, 2020. Under the 2016 Plan, shares can be granted in the form of stock options, stock appreciation rights, restricted stock awards, performance awards, dividend equivalent rights, and other awards. Under the 2016 Plan, the exercise price of shares granted may not be less than 100% of the fair market value at the date of the grant. The 2016 Plan is administered by the Compensation Committee of the Board of Directors or such other committee of the Board of Directors as is designated by the Board of Directors (the “Committee”). Membership on the Committee is limited to independent directors. The Committee may delegate certain duties to one or more officers of the Company as provided in the 2016 Plan. The Committee determines the persons to whom awards are to be made, determines the type, size and terms of awards, interprets the 2016 Plan, establishes and revises rules and regulations relating to the 2016 Plan and makes any other determinations that it believes necessary for the administration of the 2016 Plan. Options The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the nine months ended September 30, 2022 and 2021 using a Black Scholes-Merton Model: Nine months ended September 30, 2022 September 30, 2021 Directors and SLT 1 : Expected dividend rate $0.38 $0.38 Expected volatility 36.00% 35.78% Risk-free interest rate 2.21% 0.51% Expected life (in years) 4.0 4.0 Employees: Expected dividend rate $0.38 $0.38 Expected volatility 37.38% 38.69% Risk-free interest rate 2.20% 0.30% Expected life (in years) 3.0 3.0 1 Senior Leadership Team ("SLT") consists of officers and key members of management. The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date. The following is a summary of stock options vested and exercisable as of September 30, 2022: Range of Number Weighted Average Remaining Contractual Life (in years) Weighted Intrinsic Value ( in thousands ) $ 9.79 - $ 41.37 1,233,000 5.29 $ 36.72 $ 21,160 $ 42.42 - $ 54.20 309,531 6.88 44.68 2,848 $ 54.29 - $ 79.81 118,916 7.96 72.20 — Total 1,661,447 5.78 $ 40.74 $ 24,008 The following is a summary of stock options vested and exercisable as of September 30, 2021: Range of Number Weighted Average Remaining Contractual Life (in years) Weighted Intrinsic Value ( in thousands ) $ 8.17 - $ 40.87 593,901 4.88 $ 30.33 $ 20,790 $ 41.37 - $ 41.37 415,541 6.72 41.37 9,961 $ 42.42 - $ 73.36 139,605 8.36 45.08 2,828 Total 1,149,047 5.97 $ 36.12 $ 33,579 A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Outstanding at December 31, 2021 3,365,469 $ 42.88 Granted 434,941 54.47 Exercised (305,180) 36.00 Forfeited or Expired (145,856) 49.45 Outstanding at September 30, 2022 3,349,374 $ 44.73 Exercisable at September 30, 2022 1,661,447 $ 40.74 The total pre-tax compensation cost related to unvested stock options not yet recognized as of September 30, 2022 is $14.9 million and is expected to be recognized over a weighted average period of approximately 1.8 years. The total intrinsic value of options exercised during the nine months ended September 30, 2022 and 2021 was $6.7 million and $15.1 million, respectively. The cash received from options exercised during the nine months ended September 30, 2022 and 2021 was $11.0 million and $14.6 million, respectively. The impact of these cash receipts is included in financing activities in the accompanying consolidated statements of cash flows. Restricted Stock The fair value of restricted stock awards is based on the fair market value of AAON, Inc. common stock on the respective grant dates, reduced for the present value of dividends. At September 30, 2022, unrecognized compensation cost related to unvested restricted stock awards was approximately $4.9 million, which is expected to be recognized over a weighted average period of approximately 1.8 years. A summary of the unvested restricted stock awards is as follows: Shares Weighted Unvested at December 31, 2021 161,225 $ 46.08 Granted 62,356 53.22 Vested (69,341) 44.89 Forfeited (10,811) 47.51 Unvested at September 30, 2022 143,429 $ 49.65 PSUs We have awarded performance restricted stock units ("PSUs") to certain officers and employees under our 2016 Plan. Unlike our restricted stock awards, these PSUs are not considered legally outstanding and do not accrue dividends during the vesting period. These PSUs vest based on the level of achievement with respect to the Company's total shareholder return ("TSR") benchmarked against similar companies included in the capital goods sector of the S&P SmallCap 600 Index. The TSR measurement period is three years. At the end of the measurement period, each award will be converted into common stock at 0% to 200% of the PSUs held, depending on overall TSR as compared to the S&P SmallCap 600 Index benchmark companies. The total pre-tax compensation cost related to unvested PSUs not yet recognized as of September 30, 2022 is $2.2 million and is expected to be recognized over a weighted average period of approximately 2.2 years. The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the nine months ended September 30, 2022 and 2021 using a Monte Carlo Model: Nine months ended September 30, 2022 September 30, 2021 Expected dividend rate $0.38 $0.38 Expected volatility 37.60% 39.10% Risk-free interest rate 2.00% 0.28% Expected life (in years) 2.8 2.6 The expected term of the PSUs is based on their remaining performance period. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. Volatility is based on historical volatility of our stock over time periods equal to the expected life at grant date. A summary of the unvested PSUs is as follows: Shares Weighted Unvested at December 31, 2021 16,851 $ 87.78 Granted 48,946 44.74 Vested — — Forfeited (5,031) 62.14 Unvested at September 30, 2022 60,766 $ 55.23 Key Employee Awards Subject to the MIPA Agreement (Note 3), the Company granted awards to key employees of BasX ("Key Employee Awards"). Unlike our restricted stock awards under the 2016 Plan, the Key Employee Awards are not considered legally outstanding and do not accrue dividends during the vesting period. The potential future issuance of the Key Employee Awards is contingent upon BasX meeting certain post-closing earn-out milestones during each of the years ending 2021, 2022 and 2023 as defined by the MIPA Agreement and continued employment with the Company. At the end of the earn-out period, ending December 31, 2023, each eligible Key Employee Award will vest and be converted into common stock. The fair value of Key Employee Awards is based on the fair market value of AAON common stock on the grant date. The total pre-tax compensation cost related to unvested Key Employee Awards not yet recognized as of September 30, 2022 is $1.3 million and is expected to be recognized over a weighted average period of approximately 1.3 years. A summary of the unvested Key Employee Awards is as follows: Shares Weighted Unvested at December 31, 2021 26,599 $ 80.18 Granted — — Vested — — Forfeited — — Unvested at September 30, 2022 26,599 $ 80.18 Share-Based Compensation A summary of share-based compensation is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Grant date fair value of awards during the period: (in thousands) Options $ 480 $ 152 $ 5,979 $ 6,870 PSUs 109 32 2,190 1,622 Restricted stock 164 80 3,319 2,253 Total $ 753 $ 264 $ 11,488 $ 10,745 Share-based compensation expense: Options $ 2,104 $ 2,167 $ 6,483 $ 6,594 PSUs 188 166 665 355 Restricted stock 768 658 2,290 1,835 Key employee awards 261 — 791 — Total $ 3,321 $ 2,991 $ 10,229 $ 8,784 Income tax benefit/(deficiency) related to share-based compensation: Options $ 531 $ 440 $ 1,022 $ 3,010 Restricted stock 3 1 231 820 Total $ 534 $ 441 $ 1,253 $ 3,830 Share-based compensation expense is recognized on a straight-line basis over the service period of the related share-based compensation award. Historically, stock options and restricted stock awards, granted to employees, vest at a rate of 20% per year. Restricted stock awards granted to directors historically vest one-third each year or, if granted on or after May 2019, vest over the shorter of directors' remaining elected term or one-third each year. As of March 2021, all new grants of stock options and restricted stock awards, granted to employees, vest at a rate of 33.3% per year. Forfeitures are accounted for as they occur. Historically, if the employee or director is retirement eligible (as defined by the applicable LTIP or 2016 Plan) or becomes retirement eligible during service period of the related share-based compensation award, the service period (and compensation expense recognition) is the lesser of 1) the grant date, if retirement eligible on grant date, or 2) the period between grant date and retirement eligible date. All stock options and restricted stock awards granted on or after March 1, 2020 to retirement eligible employees or directors contain a one-year employment requirement (minimum service period) or the entire award is forfeited. Forfeitures are accounted for as they occur. The PSUs cliff vest on December 31, at the end of the third year from the date of grant. Share-based compensation expense is recognized on a straight-line basis over the service period of PSUs. The PSUs are subject to several service and market conditions, as defined by the PSU agreement, which allows the holder to retain a pro-rata amount of awards as a result of certain termination conditions, retirement, change in common control, or death. Forfeitures are accounted for as they occur. The Key Employee Awards cliff vest on December 31, 2023. Share-based compensation expense is recognized on a straight-line basis over the service period of the Key Employee Awards when it is probable that the performance conditions will be satisfied. The Key Employee Awards are subject to several service and performance conditions, as defined by the Key Employee Award agreement, which allows the holder to retain an amount of the awards as a result of certain termination conditions or change in common control. Forfeitures are accounted for as they occur.

Employee Benefits

Employee Benefits	9 Months Ended
	Sep. 30, 2022
Retirement Benefits [Abstract]
Employee Benefits	Employee Benefits Defined Contribution Plan - 401(k ) We sponsor a defined contribution plan (the “Plan”). Eligible employees may make contributions in accordance with the Plan and IRS guidelines. In addition to the traditional 401(k), eligible employees are given the option of making an after-tax contribution to a Roth 401(k) or a combination of both. The Plan provides for automatic enrollment and for an automatic increase to the deferral percentage at January 1st of each year and each year thereafter. Eligible employees are automatically enrolled in the Plan at a 6% deferral rate and currently contributing employees deferral rates will be increased to 6% unless their current rate is at or above 6% or the employee elects to decline the automatic enrollment or increase. Administrative expenses are paid for by Plan participants. The Company paid no administrative expenses during the nine months ended September 30, 2022 and 2021. The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Contributions, net of forfeitures, made to the defined contribution plan $ 4,189 $ 2,526 $ 10,768 $ 6,924 Profit Sharing Bonus Plan We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit from consolidated AAON Oklahoma and AAON Coil Products is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees of AAON Oklahoma or AAON Coil Products who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team. BasX has a separate employee incentive program (EIP) under which 5% of BasX's pre-tax profit, plus certain add backs, is paid ratably to eligible employees based on days-of-pay during the fiscal year. Eligible employees are regular full-time and part-time employees who have worked during the year and are still employed when the EIP payment is made following the end of the fiscal year, excluding members of BasX's senior leadership team and any employee paid commissions or royalties. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Profit sharing bonus plan and employee incentive plan expense $ 4,137 $ 2,358 $ 8,952 $ 7,409 Employee Medical Plan At AAON Oklahoma and AAON Texas, we self-insure for our employees' health insurance, and make medical claim payments up to certain stop-loss amounts. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company matches 175% of a participating AAON Oklahoma and AAON Texas employee's allowed contributions to a qualified health saving account to assist employees with health insurance plan deductibles. BasX is insured for healthcare coverage through a third party. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company contributes certain amounts for BasX's employees enrolled in a high deductible plan to a qualified health savings account to assist employees with health insurance plan deductibles. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Medical premium payments $ 3,429 $ 2,342 $ 7,418 $ 6,188 Health saving account contributions 968 888 2,871 2,621

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share assumes the conversion of all potentially dilutive securities and is calculated by dividing net income by the sum of the weighted average number of shares of common stock outstanding plus all potentially dilutive securities. Dilutive common shares consist primarily of stock options and restricted stock awards. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Numerator: (in thousands, except share and per share data) Net income $ 27,473 $ 15,581 $ 61,478 $ 52,572 Denominator: Basic weighted average shares 53,185,324 52,420,711 53,029,284 52,392,300 Effect of dilutive shares related to stock based compensation 1 773,391 1,125,802 757,210 1,272,697 Effect of dilutive shares related to contingent consideration 2 — — 135,371 — Diluted weighted average shares 53,958,715 53,546,513 53,921,865 53,664,997 Earnings per share: Basic $ 0.52 $ 0.30 $ 1.16 $ 1.00 Dilutive $ 0.51 $ 0.29 $ 1.14 $ 0.98 Anti-dilutive shares: Shares 764,505 375,428 693,898 291,236 1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 13) 2 Dilutive shares related to contingent shares issued to the former owners of BasX (Note 3 & Note 16)

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchases The Board has authorized three stock repurchase programs for the Company. The Company may purchase shares on the open market from time to time. The Board must authorize the timing and amount of these purchases and all repurchases are in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market. Our open market repurchase programs are as follows: Effective Date Authorized Repurchase $ Expiration Date May 16, 2018 1 $15 million March 1, 2019 March 5, 2019 1 $20 million March 4, 2020 March 13, 2020 $20 million November 9, 2022 November 3, 2022 $50 million ** 2 1 The 2018 and 2019 purchase authorizations were executed under 10b5-1 programs. 2 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board. The Company also had a stock repurchase arrangement by which employee-participants in our 401(k) savings and investment plan were entitled to have shares in AAON, Inc. stock in their accounts sold to the Company. The 401(k) Plan was amended in June 2022 to discontinue this program. No additional shares have been purchased by the Company under this arrangement since June 2022. Lastly, the Company repurchases shares of AAON, Inc. stock from certain of its directors and employees for payment of statutory tax withholdings on stock transactions. All other repurchases from directors or employees are contingent upon Board approval. All repurchases are done at current market prices. Our repurchase activity is as follows: Nine Months Ended September 30, 2022 September 30, 2021 (in thousands, except share and per share data) Program Shares Total $ $ per share Shares Total $ $ per share Open market 35,479 $ 2,030 $ 57.22 — $ — $ — 401(k) 103,936 5,913 56.89 220,336 15,014 68.14 Directors and employees 16,593 978 58.94 21,779 1,537 70.57 Total 156,008 $ 8,921 $ 57.18 242,115 $ 16,551 $ 68.36 Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to September 30, 2022 (in thousands, except share and per share data) Program Shares Total $ $ per share Open market 4,240,734 $ 76,823 $ 18.12 401(k) 8,308,368 171,789 20.68 Directors and employees 2,044,320 23,319 11.41 Total 14,593,422 $ 271,931 $ 18.63 Subsequent to September 30, 2022 and through November 3, 2022, the Company repurchased a total of 86,633 shares for $4.8 million through our open market repurchase program. As of November 3, 2022, the Company has approximately $8.2 million remaining for open market repurchases under our current stock repurchase program which expires on November 9, 2022 . On November 3, 2022, the Board of Directors approved an updated stock repurchase plan with repurchases under the plan not to exceed $50 million. The current repurchase plan will expire at the Board of Directors discretion. Dividends At the discretion of the Board, we pay semi-annual cash dividends. Board approval is required to determine the date of declaration and amount for each semi-annual dividend payment. Our recent dividends are as follows: Declaration Date Record Date Payment Date Dividend per Share May 17, 2021 June 3, 2021 July 1, 2021 $0.19 November 9, 2021 November 26, 2021 December 17, 2021 $0.19 May 18, 2022 June 3, 2022 July 1, 2022 $0.19 Contingent Shares Issued in BasX Acquisition On December 10, 2021, we closed on the acquisition of BasX (Note 3). Under the MIPA Agreement, we committed to $78.0 million in the aggregate of contingent consideration to the former owners of BasX, which is payable in approximately 1,037,000 shares of the Company's common stock, par value $0.004 per share. The shares do not accrue dividends. Under the MIPA Agreement, the potential future issuance of the shares is contingent upon BasX meeting certain post-closing earn-out milestones during each of the years ended 2021, 2022, and 2023. Based on the final allocation of the consideration paid (Note 3), we estimated the fair value of contingent consideration related to these shares to be approximately $60.0 million, which is included in additional paid-in capital on the consolidated balance sheets. As of September 30, 2022, 486,268 shares related to the year ended 2021 earn-out milestone had been issued to the former owners of BasX as part of a private placement exempt from registration with the SEC under Rule 506(b), which are included in common stock on the consolidated statements of stockholders' equity. No additional shares have been issued as of November 3, 2022.

New Market Tax Credit

New Market Tax Credit	9 Months Ended
	Sep. 30, 2022
New Market Tax Credit [Abstract]
New Market Tax Credit	New Markets Tax Credit On October 24, 2019, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “Project”). In connection with the NMTC transaction, the Company received a $23.0 million NMTC allocation for the Project and secured low interest financing and the potential for future debt forgiveness related to the Project. Upon closing of the NMTC transaction, the Company provided an aggregate of approximately $15.9 million to the Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $15.9 million in proceeds plus capital contributed from the Investor was used to make an aggregate $22.5 million loan to a subsidiary of the Company. This financing arrangement is secured by equipment at the Company's Longview, Texas facilities and a guarantee from the Company, including an unconditional guarantee of NMTCs. This transaction also includes a put/call feature that either of which can be exercised at the end of the seven-year compliance period. The Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The Investor's interest of $6.3 million is recorded in New market tax credit obligation on the consolidated balance sheet. The Company incurred approximately $0.3 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. The Investor is subject to 100 percent recapture of the NMTC it receives for a period of seven years, as provided in the Internal Revenue Code and applicable U.S. Treasury regulations in the event that the financing facility of the Borrower under the transaction (AAON Coil Products, Inc.) becomes ineligible for NMTC treatment per the Internal Revenue Code requirements. The Company is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Noncompliance with applicable requirements could result in the Investor’s projected tax benefits not being realized and, therefore, require the Company to indemnify the Investor for any loss or recapture of the NMTC related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Company does not anticipate any credit recapture will be required in connection with this financing arrangement. The Investor and its majority owned community development entity are considered VIEs and the Company is the primary beneficiary of the VIEs. Because the Company is the primary beneficiary of the VIEs, they have been included in the consolidated financial statements. There are no other assets, liabilities or transactions in these VIEs outside of the financing transactions executed as part of the NMTC arrangement.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to various claims and legal actions that arise in the ordinary course of business. We closely monitor these claims and legal actions and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position, results of operations or cash flows and we accrue and/or disclose loss contingencies as appropriate. We have concluded that the likelihood is remote that the ultimate resolution of any pending litigation or claims will be material or have a material adverse effect on the Company's business, financial position, results of operations and/or cash flows. We are occasionally party to short-term, cancellable and occasionally non-cancellable, fixed price contracts with major suppliers for the purchase of raw material and component parts. We expect to receive delivery of raw materials for use in our manufacturing operations. These contracts are not accounted for as derivative instruments because they meet the normal purchase and normal sales exemption. We had no material contractual purchase obligations as of September 30, 2022 except as described below. On April 27, 2022, the Company entered into a purchase and sale agreement with a third party manufacturer to purchase the intellectual property rights to design and manufacture fan wheels for the purchase price of approximately $6.5 million. The purchase price will be paid in three installments over the next 18 months. As of November 3, 2022 we have paid approximately $3.5 million related to this agreement, which is included in other long-term assets on the consolidated balance sheets.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Parties	Related PartiesThe Company sells units to an entity owned by a member of the CEO/President's immediate family. This entity is also one of the Company’s Representatives and as such, the Company makes payments to the entity for third party products. Additionally, the Company purchases some supplies from entities controlled by two of the Company’s board members and the Company sometimes makes sales to a board member for parts. From December 10, 2021 through May 31, 2022 (Note 3), the Company leased a manufacturing and office facility in Redmond, Oregon from an entity in which certain members of BasX management have an ownership interest. This facility was purchased 100% by the Company on May 31, 2022. The following is a summary of transactions and balance with affiliates: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Sales to affiliates $ 450 $ 1,560 $ 3,529 $ 2,372 Payments to affiliates 30 23 1,033 153 September 30, December 31, (in thousands) Due from affiliates $ 702 $ 547 Due to affiliates — —

Segments

Segments	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segments	Segments The Company has determined that it has three reportable segments for financial reporting purposes. Management evaluates the performance of its business segments primarily on gross profit. The Company's chief decision maker ("CODM"), our CEO, allocates resources and assesses the performance of each operating segment using information about the operating segment's net sales and income from operations. The CODM does not evaluate operating segments using asset or liability information. AAON Oklahoma: AAON Oklahoma designs, manufactures, sells and services standard, semi-custom and custom HVAC systems, designs and produces controls solutions for all of our HVAC units and sells retail parts to customers through our two retail part stores. Through the NAIC research and development laboratory facility, AAON Oklahoma is able test units under various environmental conditions. AAON Oklahoma includes the operations of both our Tulsa, Oklahoma and Parkville, Missouri facilities, our NAIC research and development laboratory facility and two retail parts locations. AAON Coil Products: AAON Coil Products designs and manufactures a selection of our standard, semi-custom and custom HVAC systems. In addition, AAON Coil Products designs and manufactures various heating and cooling coils to be used in HVAC systems, mostly for the benefit of AAON Oklahoma and AAON Coil Products. AAON Coil Products consists of operations at our Longview, Texas facilities. BasX: BasX provides product development design and manufacturing of custom engineered air handling systems including high efficiency data center cooling solutions, cleanroom solutions, HVAC systems and modular solutions. BasX consists of operations at our Redmond, Oregon facility. The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. The Gross Profit amounts shown below are presented after elimination entries. Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net Sales (in thousands) AAON Oklahoma External sales $ 179,169 $ 122,136 $ 476,517 $ 348,378 Inter-segment sales 998 817 2,157 2,026 AAON Coil Products External sales 30,504 16,435 79,193 49,857 Inter-segment sales 8,037 5,508 24,047 16,979 BasX 1 External sales 32,932 — 78,480 — Inter-segment sales 61 — 61 — Eliminations (9,096) (6,325) (26,265) (19,005) Net sales $ 242,605 $ 138,571 $ 634,190 $ 398,235 Gross Profit AAON Oklahoma $ 45,643 $ 31,730 $ 111,216 $ 99,725 AAON Coil Products 10,564 4,289 26,344 11,558 BasX 1 9,384 — 21,471 — Gross profit $ 65,591 $ 36,019 $ 159,031 $ 111,283 1 BasX was acquired on December 10, 2021. September 30, 2022 December 31, 2021 Long-lived assets (in thousands) AAON Oklahoma $ 198,737 $ 183,840 AAON Coil Products 67,151 62,534 BasX 35,750 28,662 Total long-lived assets $ 301,638 $ 275,036 Intangible assets and goodwill AAON Oklahoma $ 3,229 $ 3,229 AAON Coil Products — — BasX 144,170 152,619 Total intangible assets and goodwill $ 147,399 $ 155,848

General (Policies)

General (Policies)	9 Months Ended
	Sep. 30, 2022
Basis of Presentation and Significant Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because these estimates and assumptions require significant judgment, actual results could differ from those estimates and could have a significant impact on our results of operations, financial position and cash flows. We reevaluate our estimates and assumptions as needed, but at a minimum on a quarterly basis. The most significant estimates include, but are not limited to, inventory reserves, warranty accrual, workers' compensation accrual, medical insurance accrual, income taxes, useful lives of property, plant, and equipment, estimated future use of leased property, share-based compensation, revenue percentage of completion and estimated costs to complete. Actual results could differ materially from those estimates.
Fair Value Measurements	Fair Value Measurements The carrying amounts of cash and cash equivalents, receivables, accounts payable, and accrued liabilities approximate fair value because of the short-term maturity of the items. The carrying amount of the Company’s revolving line of credit, and other payables, approximate their fair values either due to their short term nature, the variable rates associated with the debt, or based on current rates offered to the Company for debt with similar characteristics. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Fair value is based upon assumptions that market participants would use when pricing an asset or liability. We use the following fair value hierarchy, which prioritizes valuation technique inputs used to measure fair value into three broad levels: • Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date. • Level 2: Inputs (other than quoted prices included within Level 1) that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability, and (iv) inputs that are derived from observable market data by correlation or other means. • Level 3: Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. Items categorized in Level 3 include the estimated fair values of property, plant and equipment, intangible assets, contingent consideration, and goodwill acquired in a business combination. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). In some cases, the inputs used to measure fair value might fall into different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to a fair value measurement requires judgment, considering factors specific to the asset or liability. Definite-Lived Intangible Assets Our definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations (Note 3). We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review. Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years
Intangible Assets	Definite-Lived Intangible AssetsOur definite-lived intangible assets include various trademarks, service marks, and technical knowledge acquired in business combinations (Note 3). We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.
Goodwill	Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of the consideration paid for the acquired businesses over the fair value of the individual assets acquired, net of liabilities assumed. At September 30, 2022 $50.3 million of goodwill is deductible for income tax purposes. Our indefinite-lived intangible assets consist of trademark and trade names. Goodwill and indefinite-lived intangible assets are not amortized, but instead are evaluated for impairment at least annually. We perform our annual assessment of impairment during the fourth quarter of our fiscal year, and more frequently if circumstances warrant.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed or included within the Company's Annual Report on Form 10-K for the year ended December 31, 2021, were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements and notes thereto.

General (Tables)

General (Tables)	9 Months Ended
	Sep. 30, 2022
Basis of Presentation and Significant Accounting Policies [Abstract]
Schedule of Intangible Assets	Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years Our intangible assets consist of the following: September 30, 2022 December 31, 2021 Definite-lived intangible assets (in thousands) Intellectual property $ 6,295 $ 6,479 Customer relationships 47,547 48,684 Less: Accumulated amortization (2,906) (208) Total, net 50,936 54,955 Indefinite-lived intangible assets Trademarks 14,571 15,166 Total intangible assets, net $ 65,507 $ 70,121

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following tables show disaggregated net sales by reportable segment (Note 20) by major source, net of intercompany sales eliminations. Three Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BasX Total (in thousands) Rooftop Units $ 154,171 $ — $ — $ 154,171 Condensing Units — 12,720 — 12,720 Air Handlers — 14,380 2,211 16,591 Outdoor Mechanical Rooms 58 118 — 176 Cleanroom Systems — — 15,283 15,283 Data Center Cooling Solutions — — 14,884 14,884 Water-Source Heat Pumps 3,236 2,445 — 5,681 Part Sales 15,724 — 176 15,900 Other 2 5,980 841 378 7,199 $ 179,169 $ 30,504 $ 32,932 $ 242,605 Three Months Ended September 30, 2021 AAON Oklahoma AAON Coil Products BasX 1 Total (in thousands) Rooftop Units $ 103,900 $ — $ — $ 103,900 Condensing Units 120 6,677 — 6,797 Air Handlers — 6,279 — 6,279 Outdoor Mechanical Rooms 179 29 — 208 Water-Source Heat Pumps 2,536 2,679 — 5,215 Part Sales 12,102 — — 12,102 Other 2 3,299 771 — 4,070 $ 122,136 $ 16,435 $ — $ 138,571 Nine Months Ended September 30, 2022 AAON Oklahoma AAON Coil Products BasX Total (in thousands) Rooftop Units $ 414,493 $ — $ — $ 414,493 Condensing Units 242 33,645 — 33,887 Air Handlers — 35,358 6,495 41,853 Outdoor Mechanical Rooms 612 488 — 1,100 Cleanroom Systems — — 31,568 31,568 Data Center Cooling Solutions — — 38,589 38,589 Water-Source Heat Pumps 8,098 6,596 — 14,694 Part Sales 39,797 — 507 40,304 Other 2 13,275 3,106 1,321 17,702 $ 476,517 $ 79,193 $ 78,480 $ 634,190 Nine Months Ended September 30, 2021 AAON Oklahoma AAON Coil Products BasX 1 Total (in thousands) Rooftop Units $ 298,695 $ — $ — $ 298,695 Condensing Units 762 19,868 — 20,630 Air Handlers — 19,958 — 19,958 Outdoor Mechanical Rooms 820 363 — 1,183 Water-Source Heat Pumps 8,993 7,312 — 16,305 Part Sales 30,325 — — 30,325 Other 2 8,783 2,356 — 11,139 $ 348,378 $ 49,857 $ — $ 398,235 1 BasX was acquired by the Company on December 10, 2021. As the BasX segment was not applicable for the three and nine months ended September 30, 2021, it has been excluded from the tables for those periods. 2 Other sales include freight, extended warranties and miscellaneous revenue.

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
	Sep. 30, 2022
Business Combinations [Abstract]
Schedule of Acquisition	The following table presents the final allocation of the consideration paid to the assets acquired and liabilities assumed in the acquisition of BasX described above, which was still preliminary at December 31, 2021. The revisions indicated below were recorded during the first quarter of 2022. The revisions were the results of updates to our preliminary estimates and third party valuation models. The impact of such revisions on net income were not significant. Final Allocation Estimated Revisions (in thousands) Accounts receivable $ 13,699 $ 13,699 $ — Inventories 2,725 2,725 — Contract assets 7,635 7,635 — Prepaid expenses and other 341 341 — Property, plant and equipment 13,169 13,169 — Right of use assets 15,611 15,611 — Intangible assets 68,413 70,329 (1,916) Goodwill 78,663 82,498 (3,835) Accounts payable (9,388) (9,388) — Accrued liabilities (3,807) (3,807) — Contract liabilities (7,771) (7,771) — Lease liabilities (15,611) (15,611) — Contingent Consideration - shares of AAON, Inc. (60,000) (66,000) 6,000 Consideration paid $ 103,679 $ 103,430 $ 249
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired	The Company recognized the following definite and indefinite-lived intangible assets as part of the acquisition of BasX: Final Allocation Estimated Revisions (in thousands) Definite-lived intangible assets Intellectual property $ 6,295 $ 6,479 $ (184) Customer relationships 47,547 48,684 (1,137) 53,842 55,163 (1,321) Indefinite-lived intangible assets Trademarks 14,571 15,166 (595) Total intangible assets acquired $ 68,413 $ 70,329 $ (1,916)
Schedule of Pro Forma Information	Pro Forma Results of Operations (unaudited) The operations of BasX have been included in our statements of income since the closing date on December 10, 2021. The following unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2021 are presented as if the combination had been made on January 1, 2021. (unaudited) Three months ended Nine months ended September 30, 2021 September 30, 2021 (in thousands, except per share data) Revenues $ 159,636 $ 452,635 Net income $ 17,257 $ 55,751 Earnings per share: Basic $ 0.33 $ 1.06 Dilutive $ 0.32 $ 1.04

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Lessee, Operating Lease, Liability, Maturity	The following table presents the balances by lease type: Balance Sheet Classification September 30, 2022 December 31, 2021 Operating Leases Right of use assets Right of use assets $ 1,684 $ 16,974 Current lease liability Accrued liabilities $ 522 $ 1,580 Noncurrent lease liability Other long-term liabilities $ 1,153 $ 15,467

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Accounts Receivable	September 30, December 31, 2021 (in thousands) Accounts receivable $ 134,755 $ 71,329 Less: Allowance for credit losses (682) (549) Total, net $ 134,073 $ 70,780
Allowance for Doubtful Accounts	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Allowance for credit losses: (in thousands) Balance, beginning of period $ 563 $ 518 $ 549 $ 506 Provisions for (recoveries of) expected credit 119 (12) 300 — losses, net of adjustments Accounts receivable written off, net of recoveries — (29) (167) (29) Balance, end of period $ 682 $ 477 $ 682 $ 477

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventories	The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows: September 30, December 31, 2021 (in thousands) Raw materials $ 171,230 $ 124,480 Work in process 2,739 3,049 Finished goods 5,984 4,528 Total, gross 179,953 132,057 Less: Allowance for excess and obsolete inventories (3,065) (1,787) Total, net $ 176,888 $ 130,270
Inventories (Allowance)	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Allowance for excess and obsolete inventories: (in thousands) Balance, beginning of period $ 1,871 $ 2,726 $ 1,787 $ 3,261 Provision for (recovery of) excess and 1,232 86 1,380 378 obsolete inventories Inventories written off (38) (520) (102) (1,347) Balance, end of period $ 3,065 $ 2,292 $ 3,065 $ 2,292

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Amortization is computed using the straight-line method over the following estimated useful lives: Intellectual property 30 years Customer relationships 14 years Our intangible assets consist of the following: September 30, 2022 December 31, 2021 Definite-lived intangible assets (in thousands) Intellectual property $ 6,295 $ 6,479 Customer relationships 47,547 48,684 Less: Accumulated amortization (2,906) (208) Total, net 50,936 54,955 Indefinite-lived intangible assets Trademarks 14,571 15,166 Total intangible assets, net $ 65,507 $ 70,121
Schedule of Amortization Expense	Amortization expense recorded in cost of sales is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Amortization expense $ 902 $ — $ 2,698 $ 38

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2022
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Supplemental disclosures: (in thousands) Interest paid $ 974 $ — $ 1,507 $ — Income taxes paid $ 3,086 $ 3,167 $ 14,067 $ 5,909 Non-cash investing and financing activities: Non-cash capital expenditures $ 306 $ (1,052) $ 985 $ (2,897)

Warranties (Tables)

Warranties (Tables)	9 Months Ended
	Sep. 30, 2022
Guarantees [Abstract]
Warranty	Changes in the warranty accrual are as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Warranty accrual: (in thousands) Balance, beginning of period $ 14,381 $ 14,008 $ 13,769 $ 13,522 Payments made (2,196) (1,825) (5,094) (4,834) Provisions 3,046 1,272 6,556 4,767 Balance, end of period $ 15,231 $ 13,455 $ 15,231 $ 13,455 Warranty expense: $ 3,046 $ 1,272 $ 6,556 $ 4,767

Accrued Liabilities and Other_2

Accrued Liabilities and Other Long-Term Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities were comprised of the following: September 30, December 31, 2021 (in thousands) Warranty $ 15,231 $ 13,769 Due to representatives 14,272 7,995 Payroll 10,599 8,423 Profit sharing 4,136 1,489 Workers' compensation 282 308 Medical self-insurance 1,362 1,943 Customer prepayments 3,029 5,931 Donations 200 438 Employee vacation time 5,810 4,362 Lease liability, short-term 522 1,580 Property taxes 2,221 1,787 Extended warranties, short-term 1,345 1,532 Other 2,771 649 Total $ 61,780 $ 50,206
Schedule of Other Long-Term Liabilities	Other long-term liabilities were comprised of the following: September 30, December 31, 2021 (in thousands) Long-term operating lease obligation $ 1,153 $ 15,467 Extended warranties 3,940 3,042 Long-term donations and other 549 334 Total $ 5,642 $ 18,843

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The provision (benefit) for income taxes consists of the following: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Current $ 8,763 $ 4,508 $ 17,849 $ 8,498 Deferred (436) 19 (563) 2,766 Income tax provision $ 8,327 $ 4,527 $ 17,286 $ 11,264
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of Federal benefit 5.0 3.4 4.7 3.0 Excess tax benefits (1.5) (2.2) (1.6) (6.0) Return to provision adjustments (0.4) 0.6 (0.5) — Other (0.8) (0.3) (1.7) (0.4) Effective tax rate 23.3 % 22.5 % 21.9 % 17.6 %

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-based Payment Arrangement [Abstract]
Summary of Stock Option Assumptions	The following weighted average assumptions were used to determine the fair value of the stock options granted on the original grant date for expense recognition purposes for options granted during the nine months ended September 30, 2022 and 2021 using a Black Scholes-Merton Model: Nine months ended September 30, 2022 September 30, 2021 Directors and SLT 1 : Expected dividend rate $0.38 $0.38 Expected volatility 36.00% 35.78% Risk-free interest rate 2.21% 0.51% Expected life (in years) 4.0 4.0 Employees: Expected dividend rate $0.38 $0.38 Expected volatility 37.38% 38.69% Risk-free interest rate 2.20% 0.30% Expected life (in years) 3.0 3.0 1 Senior Leadership Team ("SLT") consists of officers and key members of management. The following weighted average assumptions were used to determine the fair value of the PSUs granted on the original grant date for expense recognition purposes for PSUs granted during the nine months ended September 30, 2022 and 2021 using a Monte Carlo Model: Nine months ended September 30, 2022 September 30, 2021 Expected dividend rate $0.38 $0.38 Expected volatility 37.60% 39.10% Risk-free interest rate 2.00% 0.28% Expected life (in years) 2.8 2.6
Summary of Stock Options Outstanding	The following is a summary of stock options vested and exercisable as of September 30, 2022: Range of Number Weighted Average Remaining Contractual Life (in years) Weighted Intrinsic Value ( in thousands ) $ 9.79 - $ 41.37 1,233,000 5.29 $ 36.72 $ 21,160 $ 42.42 - $ 54.20 309,531 6.88 44.68 2,848 $ 54.29 - $ 79.81 118,916 7.96 72.20 — Total 1,661,447 5.78 $ 40.74 $ 24,008 The following is a summary of stock options vested and exercisable as of September 30, 2021: Range of Number Weighted Average Remaining Contractual Life (in years) Weighted Intrinsic Value ( in thousands ) $ 8.17 - $ 40.87 593,901 4.88 $ 30.33 $ 20,790 $ 41.37 - $ 41.37 415,541 6.72 41.37 9,961 $ 42.42 - $ 73.36 139,605 8.36 45.08 2,828 Total 1,149,047 5.97 $ 36.12 $ 33,579
Summary of Stock Option Activity	A summary of stock option activity under the plans is as follows: Stock Options Shares Weighted Outstanding at December 31, 2021 3,365,469 $ 42.88 Granted 434,941 54.47 Exercised (305,180) 36.00 Forfeited or Expired (145,856) 49.45 Outstanding at September 30, 2022 3,349,374 $ 44.73 Exercisable at September 30, 2022 1,661,447 $ 40.74
Summary of Unvested Restricted Stock Awards	A summary of the unvested restricted stock awards is as follows: Shares Weighted Unvested at December 31, 2021 161,225 $ 46.08 Granted 62,356 53.22 Vested (69,341) 44.89 Forfeited (10,811) 47.51 Unvested at September 30, 2022 143,429 $ 49.65
Schedule of Nonvested Key Employee Award Activity	A summary of the unvested Key Employee Awards is as follows: Shares Weighted Unvested at December 31, 2021 26,599 $ 80.18 Granted — — Vested — — Forfeited — — Unvested at September 30, 2022 26,599 $ 80.18
Schedule of Nonvested Performance-based Units Activity	A summary of the unvested PSUs is as follows: Shares Weighted Unvested at December 31, 2021 16,851 $ 87.78 Granted 48,946 44.74 Vested — — Forfeited (5,031) 62.14 Unvested at September 30, 2022 60,766 $ 55.23
Summary of Share-Based Compensation Expense	A summary of share-based compensation is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Grant date fair value of awards during the period: (in thousands) Options $ 480 $ 152 $ 5,979 $ 6,870 PSUs 109 32 2,190 1,622 Restricted stock 164 80 3,319 2,253 Total $ 753 $ 264 $ 11,488 $ 10,745 Share-based compensation expense: Options $ 2,104 $ 2,167 $ 6,483 $ 6,594 PSUs 188 166 665 355 Restricted stock 768 658 2,290 1,835 Key employee awards 261 — 791 — Total $ 3,321 $ 2,991 $ 10,229 $ 8,784 Income tax benefit/(deficiency) related to share-based compensation: Options $ 531 $ 440 $ 1,022 $ 3,010 Restricted stock 3 1 231 820 Total $ 534 $ 441 $ 1,253 $ 3,830

Employee Benefits (Tables)

Employee Benefits (Tables)	9 Months Ended
	Sep. 30, 2022
Retirement Benefits [Abstract]
Schedule of Contributions Made to Defined Contribution Plan	The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Contributions, net of forfeitures, made to the defined contribution plan $ 4,189 $ 2,526 $ 10,768 $ 6,924
Schedule of Profit Sharing Bonus Plan	We maintain a discretionary profit sharing bonus plan under which approximately 10% of pre-tax profit from consolidated AAON Oklahoma and AAON Coil Products is paid to eligible employees on a quarterly basis in order to reward employee productivity. Eligible employees are regular full-time employees of AAON Oklahoma or AAON Coil Products who are actively employed and working on the first and last days of the calendar quarter and who were employed full-time for at least three full months prior to the beginning of the calendar quarter, excluding the Company's senior leadership team. BasX has a separate employee incentive program (EIP) under which 5% of BasX's pre-tax profit, plus certain add backs, is paid ratably to eligible employees based on days-of-pay during the fiscal year. Eligible employees are regular full-time and part-time employees who have worked during the year and are still employed when the EIP payment is made following the end of the fiscal year, excluding members of BasX's senior leadership team and any employee paid commissions or royalties. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Profit sharing bonus plan and employee incentive plan expense $ 4,137 $ 2,358 $ 8,952 $ 7,409
Schedule of Employee Medical Plan	At AAON Oklahoma and AAON Texas, we self-insure for our employees' health insurance, and make medical claim payments up to certain stop-loss amounts. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company matches 175% of a participating AAON Oklahoma and AAON Texas employee's allowed contributions to a qualified health saving account to assist employees with health insurance plan deductibles. BasX is insured for healthcare coverage through a third party. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company contributes certain amounts for BasX's employees enrolled in a high deductible plan to a qualified health savings account to assist employees with health insurance plan deductibles. Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Medical premium payments $ 3,429 $ 2,342 $ 7,418 $ 6,188 Health saving account contributions 968 888 2,871 2,621

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Numerator: (in thousands, except share and per share data) Net income $ 27,473 $ 15,581 $ 61,478 $ 52,572 Denominator: Basic weighted average shares 53,185,324 52,420,711 53,029,284 52,392,300 Effect of dilutive shares related to stock based compensation 1 773,391 1,125,802 757,210 1,272,697 Effect of dilutive shares related to contingent consideration 2 — — 135,371 — Diluted weighted average shares 53,958,715 53,546,513 53,921,865 53,664,997 Earnings per share: Basic $ 0.52 $ 0.30 $ 1.16 $ 1.00 Dilutive $ 0.51 $ 0.29 $ 1.14 $ 0.98 Anti-dilutive shares: Shares 764,505 375,428 693,898 291,236 1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 13) 2 Dilutive shares related to contingent shares issued to the former owners of BasX (Note 3 & Note 16)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Stockholders' Equity Note [Abstract]
Schedule of Market Repurchase	Our open market repurchase programs are as follows: Effective Date Authorized Repurchase $ Expiration Date May 16, 2018 1 $15 million March 1, 2019 March 5, 2019 1 $20 million March 4, 2020 March 13, 2020 $20 million November 9, 2022 November 3, 2022 $50 million ** 2 1 The 2018 and 2019 purchase authorizations were executed under 10b5-1 programs. 2 Expiration Date is at Board's discretion. The Company is authorized to effectuate repurchases of the Company's common stock on terms and conditions approved in advance by the Board.
Schedule of Share Repurchases	Our repurchase activity is as follows: Nine Months Ended September 30, 2022 September 30, 2021 (in thousands, except share and per share data) Program Shares Total $ $ per share Shares Total $ $ per share Open market 35,479 $ 2,030 $ 57.22 — $ — $ — 401(k) 103,936 5,913 56.89 220,336 15,014 68.14 Directors and employees 16,593 978 58.94 21,779 1,537 70.57 Total 156,008 $ 8,921 $ 57.18 242,115 $ 16,551 $ 68.36 Our repurchase activity since Company inception, including our current authorized stock repurchase programs, are as follows: Inception to September 30, 2022 (in thousands, except share and per share data) Program Shares Total $ $ per share Open market 4,240,734 $ 76,823 $ 18.12 401(k) 8,308,368 171,789 20.68 Directors and employees 2,044,320 23,319 11.41 Total 14,593,422 $ 271,931 $ 18.63 Subsequent to September 30, 2022 and through November 3, 2022, the Company repurchased a total of 86,633 shares for $4.8 million through our open market repurchase program. As of November 3, 2022, the Company has approximately $8.2 million remaining for open market repurchases under our current stock repurchase program which expires on November 9, 2022 . On November 3, 2022, the Board of Directors approved an updated stock repurchase plan with repurchases under the plan not to exceed $50 million. The current repurchase plan will expire at the Board of Directors discretion.
Schedule of Dividends Payable	Our recent dividends are as follows: Declaration Date Record Date Payment Date Dividend per Share May 17, 2021 June 3, 2021 July 1, 2021 $0.19 November 9, 2021 November 26, 2021 December 17, 2021 $0.19 May 18, 2022 June 3, 2022 July 1, 2022 $0.19

Related Parties (Tables)

Related Parties (Tables)	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following is a summary of transactions and balance with affiliates: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (in thousands) Sales to affiliates $ 450 $ 1,560 $ 3,529 $ 2,372 Payments to affiliates 30 23 1,033 153 September 30, December 31, (in thousands) Due from affiliates $ 702 $ 547 Due to affiliates — —

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following table summarizes certain financial data related to our segments. Transactions between segments are recorded based on prices negotiated between the segments. The Gross Profit amounts shown below are presented after elimination entries. Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net Sales (in thousands) AAON Oklahoma External sales $ 179,169 $ 122,136 $ 476,517 $ 348,378 Inter-segment sales 998 817 2,157 2,026 AAON Coil Products External sales 30,504 16,435 79,193 49,857 Inter-segment sales 8,037 5,508 24,047 16,979 BasX 1 External sales 32,932 — 78,480 — Inter-segment sales 61 — 61 — Eliminations (9,096) (6,325) (26,265) (19,005) Net sales $ 242,605 $ 138,571 $ 634,190 $ 398,235 Gross Profit AAON Oklahoma $ 45,643 $ 31,730 $ 111,216 $ 99,725 AAON Coil Products 10,564 4,289 26,344 11,558 BasX 1 9,384 — 21,471 — Gross profit $ 65,591 $ 36,019 $ 159,031 $ 111,283 1 BasX was acquired on December 10, 2021. September 30, 2022 December 31, 2021 Long-lived assets (in thousands) AAON Oklahoma $ 198,737 $ 183,840 AAON Coil Products 67,151 62,534 BasX 35,750 28,662 Total long-lived assets $ 301,638 $ 275,036 Intangible assets and goodwill AAON Oklahoma $ 3,229 $ 3,229 AAON Coil Products — — BasX 144,170 152,619 Total intangible assets and goodwill $ 147,399 $ 155,848

General (Details)

General (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) numberOfVIE	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) numberOfVIE	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Oct. 31, 2021	Jul. 31, 2021
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of variable interest entities with directed activities | numberOfVIE	2		2
Percent of increase in starting wages for production workforce							7%
Percent of cost of living increase						3.50%
Percent on overall increase in wages	3%		3%
Provision for excess and obsolete inventories			$ 1,380	$ 378
Intangible assets, net	$ 65,507		65,507		$ 70,121
Amortization of intangible assets	902	$ 0	2,698	38
Goodwill, expected tax deductible amount	50,300		50,300
Goodwill	81,892		81,892		$ 85,727
Finite-Lived Intangible Assets [Line Items]
Provision for excess and obsolete inventories			1,380	378
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization			(25,624)	(22,532)
Provision for excess and obsolete inventories			1,380	$ 378
Cost of Sales
Basis of Presentation and Significant Accounting Policies [Abstract]
Provision for excess and obsolete inventories	1,000		1,000
Finite-Lived Intangible Assets [Line Items]
Provision for excess and obsolete inventories	1,000		1,000
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for excess and obsolete inventories	$ 1,000		$ 1,000
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Useful life			30 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life			14 years
Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation and amortization			$ 1,800

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregated Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 242,605	$ 138,571	$ 634,190	$ 398,235
AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	179,169	122,136	476,517	348,378
AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	30,504	16,435	79,193	49,857
BasX
Disaggregation of Revenue [Line Items]
Net sales	32,932	0	78,480	0
Rooftop Units
Disaggregation of Revenue [Line Items]
Net sales	154,171	103,900	414,493	298,695
Rooftop Units | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	154,171	103,900	414,493	298,695
Rooftop Units | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Rooftop Units | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Condensing Units
Disaggregation of Revenue [Line Items]
Net sales	12,720	6,797	33,887	20,630
Condensing Units | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	120	242	762
Condensing Units | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	12,720	6,677	33,645	19,868
Condensing Units | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air Handlers
Disaggregation of Revenue [Line Items]
Net sales	16,591	6,279	41,853	19,958
Air Handlers | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air Handlers | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	14,380	6,279	35,358	19,958
Air Handlers | BasX
Disaggregation of Revenue [Line Items]
Net sales	2,211	0	6,495	0
Outdoor Mechanical Rooms
Disaggregation of Revenue [Line Items]
Net sales	176	208	1,100	1,183
Outdoor Mechanical Rooms | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	58	179	612	820
Outdoor Mechanical Rooms | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	118	29	488	363
Outdoor Mechanical Rooms | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom Systems
Disaggregation of Revenue [Line Items]
Net sales	15,283		31,568
Cleanroom Systems | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0		0
Cleanroom Systems | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0		0
Cleanroom Systems | BasX
Disaggregation of Revenue [Line Items]
Net sales	15,283		31,568
Data Center Cooling Solutions
Disaggregation of Revenue [Line Items]
Net sales	14,884		38,589
Data Center Cooling Solutions | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0		0
Data Center Cooling Solutions | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0		0
Data Center Cooling Solutions | BasX
Disaggregation of Revenue [Line Items]
Net sales	14,884		38,589
Water-Source Heat Pumps
Disaggregation of Revenue [Line Items]
Net sales	5,681	5,215	14,694	16,305
Water-Source Heat Pumps | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	3,236	2,536	8,098	8,993
Water-Source Heat Pumps | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	2,445	2,679	6,596	7,312
Water-Source Heat Pumps | BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Part Sales
Disaggregation of Revenue [Line Items]
Net sales	15,900	12,102	40,304	30,325
Part Sales | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	15,724	12,102	39,797	30,325
Part Sales | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Part Sales | BasX
Disaggregation of Revenue [Line Items]
Net sales	176	0	507	0
Other
Disaggregation of Revenue [Line Items]
Net sales	7,199	4,070	17,702	11,139
Other | AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	5,980	3,299	13,275	8,783
Other | AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	841	771	3,106	2,356
Other | BasX
Disaggregation of Revenue [Line Items]
Net sales	$ 378	$ 0	$ 1,321	$ 0

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Extended product warranties, minimum length			6 months
Extended product warranties, maximum length			10 years
Payments to representatives	$ 10.8	$ 9.5	$ 28.7	$ 34.5

Business Combination (Details)

Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended		12 Months Ended
	Dec. 10, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Consideration Paid
Goodwill		$ 81,892		$ 85,727
Intangible Assets Acquired
Goodwill, expected tax deductible amount		50,300
Pro Forma Information
Revenues		159,636	$ 452,635
Net income		$ 17,257	$ 55,751
Earnings per share: Basic (in dollars per share)		$ 0.33	$ 1.06
Earnings per share: Diluted (in dollars per share)		$ 0.32	$ 1.04
Intellectual property
Intangible Assets Acquired
Definite-lived intangible assets				6,479
Revisions		$ (184)
Customer relationships
Intangible Assets Acquired
Definite-lived intangible assets				48,684
Revisions		(1,137)
BasX, LLC
Business Acquisition [Line Items]
Payments to acquire businesses	$ 100,000
Contingent consideration payable	$ 80,000
Equity interests issuable (in dollars per share)	$ 0.004
Consideration Paid
Accounts receivable		13,699		13,699
Inventories		2,725		2,725
Contract assets		7,635		7,635
Prepaid expenses and other		341		341
Property, plant and equipment		13,169		13,169
Right of use assets		15,611		15,611
Intellectual property		68,413		70,329
Goodwill		78,663		82,498
Accounts payable		(9,388)		(9,388)
Accrued liabilities		(3,807)		(3,807)
Contract liabilities		(7,771)		(7,771)
Lease liabilities		(15,611)		(15,611)
Contingent Consideration - shares of AAON	$ (60,000)	(60,000)		(66,000)
Consideration paid		103,679		103,430
Revisions
Intangible assets		(1,916)
Goodwill		(3,835)
Contingent Consideration - shares of AAON, Inc.		6,000
Consideration paid		249
Intangible Assets Acquired
Definite-lived intangible assets		53,842		55,163
Revisions		(1,321)
Indefinite-lived intangible assets		68,413		70,329
Revisions		(1,916)
Goodwill, expected tax deductible amount		47,100
BasX, LLC | Trademarks
Intangible Assets Acquired
Indefinite-lived intangible assets		14,571		$ 15,166
Revisions		(595)
BasX, LLC | Intellectual property
Intangible Assets Acquired
Definite-lived intangible assets		6,295
BasX, LLC | Customer relationships
Intangible Assets Acquired
Definite-lived intangible assets		47,547
BasX, LLC | Pushdown Accounting
Consideration Paid
Goodwill		$ 78,700
BasX, LLC | BasX Properties, LLC [Member]
Business Acquisition [Line Items]
Payments to acquire real estate	22,000
BasX, LLC | Former Owners of BasX
Business Acquisition [Line Items]
Contingent consideration payable	78,000
BasX, LLC | Key Employees of BasX
Business Acquisition [Line Items]
Contingent consideration payable	$ 2,000

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right of use assets	$ 1,684	$ 16,974
Lease liability, short-term	522	1,580
Noncurrent lease liability	$ 1,153	$ 15,467

Leases - Additional Information

Leases - Additional Information (Details) - squareFoot	Sep. 30, 2022	Sep. 29, 2022
Industrial Property
Lessee, Lease, Description [Line Items]
Number of square feet	31,000
Office Building
Lessee, Lease, Description [Line Items]
Number of square feet	4,000
MISSOURI
Lessee, Lease, Description [Line Items]
Number of square feet	86,000	51,000

Accounts Receivable - Receivabl

Accounts Receivable - Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 134,755	$ 71,329
Less:  Allowance for credit losses	(682)	(549)
Total, net	$ 134,073	$ 70,780

Accounts Receivable - Allowance

Accounts Receivable - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 563	$ 518	$ 549	$ 506
Provisions for (recoveries of) for expected credit losses, net of adjustments	119	(12)	300	0
Accounts receivable written off, net of recoveries	0	29	167	29
Balance, end of period	$ 682	$ 477	$ 682	$ 477

Inventories - Components (Detai

Inventories - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 171,230		$ 124,480
Work in process	2,739		3,049
Finished goods	5,984		4,528
Total, gross	179,953		132,057
Less: Allowance for excess and obsolete inventories	(3,065)	$ (1,871)	(1,787)	$ (2,292)	$ (2,726)	$ (3,261)
Total, net	$ 176,888		$ 130,270

Inventories - Allowance (Detail

Inventories - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Inventory Valuation Reserves [Roll Forward]
Balance, beginning of period	$ 1,871	$ 2,726	$ 1,787	$ 3,261
Provision (recovery of) for excess and obsolete inventories	1,232	86	1,380	378
Inventories written off	(38)	(520)	(102)	(1,347)
Balance, end of period	$ 3,065	$ 2,292	$ 3,065	$ 2,292

Inventory - Additional Informat

Inventory - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Inventory [Line Items]
Provision for excess and obsolete inventories		$ 1,380	$ 378
Cost of Sales
Inventory [Line Items]
Provision for excess and obsolete inventories	$ 1,000	$ 1,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Less:  Accumulated amortization	$ (2,906)		$ (2,906)		$ (208)
Total, net	50,936		50,936		54,955
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	14,571		14,571		15,166
Total intangible assets, net	65,507		65,507		70,121
Amortization of intangible assets	902	$ 0	2,698	$ 38
2022	3,600		3,600
2023	3,600		3,600
2024	3,600		3,600
2025	3,600		3,600
2026	3,600		3,600
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	6,295		6,295		6,479
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 47,547		$ 47,547		$ 48,684

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Supplemental disclosure:
Interest paid	$ 974	$ 0	$ 1,507	$ 0
Income taxes paid	3,086	3,167	14,067	5,909
Non-cash investing and financing activities:
Non-cash capital expenditures	$ 306	$ (1,052)	$ 985	$ (2,897)

Warranties - Additional Informa

Warranties - Additional Information (Details)	9 Months Ended
	Sep. 30, 2022
Product Information [Line Items]
Product warranty accrual, minimum length	1 year
Product warranty accrual, maximum length	25 years
Parts
Product Information [Line Items]
Product warranty accrual, minimum length	18 months

Warranties - Change in Accruals

Warranties - Change in Accruals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$ 14,381	$ 14,008	$ 13,769	$ 13,522
Payments made	(2,196)	(1,825)	(5,094)	(4,834)
Provisions	3,046	1,272	6,556	4,767
Balance, end of period	15,231	13,455	15,231	13,455
Warranty expense	$ 3,046	$ 1,272	$ 6,556	$ 4,767

Accrued Liabilities and Other_3

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accrued Liabilities
Warranty	$ 15,231	$ 13,769
Due to representatives	14,272	7,995
Payroll	10,599	8,423
Profit sharing	4,136	1,489
Workers' compensation	282	308
Medical self-insurance	1,362	1,943
Customer prepayments	3,029	5,931
Donations	200	438
Employee vacation time	5,810	4,362
Lease liability, short-term	522	1,580
Income tax payable	2,221	1,787
Extended warranties, short-term	1,345	1,532
Other	2,771	649
Total	61,780	50,206
Other Long-Term Liabilities
Long-term operating lease obligation	1,153	15,467
Extended warranties	3,940	3,042
Long-term donations and other	549	334
Total	$ 5,642	$ 18,843

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	May 27, 2022	Nov. 24, 2021	Oct. 24, 2019
Line of Credit Facility [Line Items]
Ratio of total liability to net worth	0.65	0.65
Maximum ratio of total liability to net worth for compliance	3	3
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings				$ 100,000,000	$ 23,000,000
Option to increase maximum borrowing capacity			$ 200,000,000
Standby letter of credit	$ 800,000	$ 800,000
Borrowings available under the revolving credit facility	$ 122,900,000	$ 122,900,000
Debt, weighted average interest rate,	3.50%	2.50%
Revolving Credit Facility | Base Rate
Line of Credit Facility [Line Items]
Stated percentage	0.50%	0.50%
Revolving Credit Facility | SOFR
Line of Credit Facility [Line Items]
Stated percentage	1%	1%
Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Applicable margin	1.25%	1.25%
Commitment fee percentage		0.10%
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Applicable margin	1.75%	1.75%
Commitment fee percentage		0.20%
Letter of Credit | Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage		1.25%
Letter of Credit | Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage		1.75%

Income Taxes - Provision (Benef

Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Current	$ 8,763	$ 4,508	$ 17,849	$ 8,498
Deferred	(436)	19	(563)	2,766
Income tax provision	$ 8,327	$ 4,527	$ 17,286	$ 11,264

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Federal Statutory Income Tax Rate (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Federal statutory rate	21%	21%	21%	21%
State income taxes, net of Federal benefit	5%	3.40%	4.70%	3%
Excess tax benefits	(1.50%)	(2.20%)	(1.60%)	(6.00%)
Return to provision adjustments	(0.40%)	0.60%	(0.50%)	0%
Other	(0.80%)	(0.30%)	(1.70%)	(0.40%)
Effective tax rate	23.30%	22.50%	21.90%	17.60%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Tax Credit Carryforward [Line Items]
Share-based payment arrangement, expense, tax benefit	$ 534	$ 441	$ 1,253	$ 3,830
Expected effective income tax rate for the year			25%
Increase in hare-based payment arrangement, expense, tax benefit, percent			(67.00%)
Investment Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 4,400		$ 4,400

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands			6 Months Ended	9 Months Ended
	May 24, 2016	May 22, 2007	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	May 12, 2020	May 15, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	8,900,000
Total intrinsic value of options exercised during period				$ 6,700	$ 15,100
Cash received from options exercised during period				$ 10,990	$ 14,573
Award requisite service period				1 year
2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	400,000	3,300,000
Exercise price of shares granted may not be less than fair market value (percentage)		100%
2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares)	3,400,000					2,500,000	2,600,000
Exercise price of shares granted may not be less than fair market value (percentage)	100%
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 2,200
Weighted average recognition period (in years)				2 years 2 months 12 days
Performance Award | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, percent of conversion in common stock				0%
Performance Award | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, percent of conversion in common stock				200%
Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 14,900
Weighted average recognition period (in years)				1 year 9 months 18 days
Restricted Stock | 2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 4,900
Weighted average recognition period (in years)				1 year 9 months 18 days
Key Employee Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost				$ 1,300
Weighted average recognition period (in years)				1 year 3 months 18 days
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			20%	33.30%

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Assumptions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate	$ 0.38	$ 0.38
Expected volatility	37.60%	39.10%
Risk-free interest rate	2%	0.28%
Expected life	2 years 9 months 18 days	2 years 7 months 6 days
Directors and Senior Leadership Team
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate	$ 0.38	$ 0.38
Expected volatility	36%	35.78%
Risk-free interest rate	2.21%	0.51%
Expected life	4 years	4 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend rate	$ 0.38	$ 0.38
Expected volatility	37.38%	38.69%
Risk-free interest rate	2.20%	0.30%
Expected life	3 years	3 years

Share-Based Compensation - Su_2

Share-Based Compensation - Summary of Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares vested and exercisable (in shares)	1,661,447	1,149,047
Options vested and exercisable weighted average remaining contractual life	5 years 9 months 10 days	5 years 11 months 19 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 40.74	$ 36.12
Options vested and exercisable intrinsic value	$ 24,008	$ 33,579
$8.17 - $41.37
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 9.79
Range of exercise prices, upper range (in dollars per share)	$ 41.37
Number of shares vested and exercisable (in shares)	1,233,000
Options vested and exercisable weighted average remaining contractual life	5 years 3 months 14 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 36.72
Options vested and exercisable intrinsic value	$ 21,160
$42.42 - $65.24
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 42.42
Range of exercise prices, upper range (in dollars per share)	$ 54.20
Number of shares vested and exercisable (in shares)	309,531
Options vested and exercisable weighted average remaining contractual life	6 years 10 months 17 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 44.68
Options vested and exercisable intrinsic value	$ 2,848
$65.29 - $79.81
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 54.29
Range of exercise prices, upper range (in dollars per share)	$ 79.81
Number of shares vested and exercisable (in shares)	118,916
Options vested and exercisable weighted average remaining contractual life	7 years 11 months 15 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 72.20
Options vested and exercisable intrinsic value	$ 0
$7.18 - $40.87
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)		$ 8.17
Range of exercise prices, upper range (in dollars per share)		$ 40.87
Number of shares vested and exercisable (in shares)		593,901
Options vested and exercisable weighted average remaining contractual life		4 years 10 months 17 days
Options vested and exercisable weighted average exercise price (in dollars per share)		$ 30.33
Options vested and exercisable intrinsic value		$ 20,790
$41.37 - $41.37
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)		$ 41.37
Range of exercise prices, upper range (in dollars per share)		$ 41.37
Number of shares vested and exercisable (in shares)		415,541
Options vested and exercisable weighted average remaining contractual life		6 years 8 months 19 days
Options vested and exercisable weighted average exercise price (in dollars per share)		$ 41.37
Options vested and exercisable intrinsic value		$ 9,961
$41.78 - $75.00
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)		$ 42.42
Range of exercise prices, upper range (in dollars per share)		$ 73.36
Number of shares vested and exercisable (in shares)		139,605
Options vested and exercisable weighted average remaining contractual life		8 years 4 months 9 days
Options vested and exercisable weighted average exercise price (in dollars per share)		$ 45.08
Options vested and exercisable intrinsic value		$ 2,828

Share-Based Compensation - Su_3

Share-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Shares [Roll Forward]
Outstanding, beginning of period (in shares)	3,365,469
Granted (in shares)	434,941
Exercised (in shares)	(305,180)
Forfeited or Expired (in shares)	(145,856)
Outstanding, end of period (in shares)	3,349,374
Exercisable, end of period (in shares)	1,661,447	1,149,047
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (weighted average exercise price)	$ 42.88
Granted (weighted average exercise price)	54.47
Exercised (weighted average exercise price)	36
Forfeited or Expired (weighted average exercise price)	49.45
Outstanding, end of period (weighted average exercise price)	44.73
Exercisable, end of period (weighted average exercise price)	$ 40.74	$ 36.12

Share-Based Compensation - Su_4

Share-Based Compensation - Summary of Unvested Awards (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Restricted Stock
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	161,225
Granted (in shares) | shares	62,356
Vested (in shares) | shares	(69,341)
Forfeited (in shares) | shares	(10,811)
Unvested, end of period (in shares) | shares	143,429
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 46.08
Granted (weighted average grant date fair value) | $ / shares	53.22
Vested (weighted average grant date fair value) | $ / shares	44.89
Forfeited (weighted average grant date fair value) | $ / shares	47.51
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 49.65
Performance Award
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	16,851
Granted (in shares) | shares	48,946
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(5,031)
Unvested, end of period (in shares) | shares	60,766
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 87.78
Granted (weighted average grant date fair value) | $ / shares	44.74
Vested (weighted average grant date fair value) | $ / shares	0
Forfeited (weighted average grant date fair value) | $ / shares	62.14
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 55.23
Key Employee Awards
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	26,599
Granted (in shares) | shares	0
Vested (in shares) | shares	0
Forfeited (in shares) | shares	0
Unvested, end of period (in shares) | shares	26,599
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 80.18
Granted (weighted average grant date fair value) | $ / shares	0
Vested (weighted average grant date fair value) | $ / shares	0
Forfeited (weighted average grant date fair value) | $ / shares	0
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 80.18

Share-Based Compensation - Su_5

Share-Based Compensation - Summary of Unvested Restricted Stock Awards (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Shares [Roll Forward]
Unvested, beginning of period (in shares) | shares	161,225
Granted (in shares) | shares	62,356
Vested (in shares) | shares	(69,341)
Forfeited (in shares) | shares	(10,811)
Unvested, end of period (in shares) | shares	143,429
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (weighted average grant date fair value) | $ / shares	$ 46.08
Granted (weighted average grant date fair value) | $ / shares	53.22
Vested (weighted average grant date fair value) | $ / shares	44.89
Forfeited (weighted average grant date fair value) | $ / shares	47.51
Unvested, end of period (weighted average grant date fair value) | $ / shares	$ 49.65

Share-Based Compensation - Su_6

Share-Based Compensation - Summary of Grant Date Fair Value of Awards (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Grant date fair value of awards during the period:
Options	$ 480	$ 152	$ 5,979	$ 6,870
Performance Awards	109	32	2,190	1,622
Restricted stock	164	80	3,319	2,253
Total	753	264	11,488	10,745
Share-based compensation expense:
Options	2,104	2,167	6,483	6,594
PSUs	188	166	665	355
Restricted stock	768	658	2,290	1,835
Key employee awards	261	0	791	0
Total	3,321	2,991	10,229	8,784
Income tax benefit/(deficiency) related to share-based compensation:
Options	531	440	1,022	3,010
Restricted stock	3	1	231	820
Total	$ 534	$ 441	$ 1,253	$ 3,830

Employee Benefits (Details)

Employee Benefits (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Defined contribution employee automatic contribution, percent			6%
Administrative expense			$ 0	$ 0
Contributions, net of forfeitures, made to the defined contribution plan	$ 4,189,000	$ 2,526,000	$ 10,768,000	6,924,000
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis			10%
Profit sharing bonus plan and employee incentive plan expense	4,137,000	2,358,000	$ 8,952,000	7,409,000
Medical premium payments	3,429,000	2,342,000	7,418,000	6,188,000
Health saving account contributions	$ 968,000	$ 888,000	$ 2,871,000	$ 2,621,000
BasX
Defined Benefit Plan Disclosure [Line Items]
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis			5%
Effective January 1, 2016
Defined Benefit Plan Disclosure [Line Items]
Percent of match			175%
Defined contribution employer, maximum match percent			6%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 27,473	$ 15,581	$ 61,478	$ 52,572
Basic weighted average shares (in shares)	53,185,324	52,420,711	53,029,284	52,392,300
Effect of dilutive stock options and restricted stock (in shares)	773,391	1,125,802	757,210	1,272,697
Effect of dilutive shares related to contingent consideration (in shares)	0	0	135,371	0
Diluted weighted average shares (in shares)	53,958,715	53,546,513	53,921,865	53,664,997
Basic (in dollars per share)	$ 0.52	$ 0.30	$ 1.16	$ 1
Diluted (in dollars per share)	$ 0.51	$ 0.29	$ 1.14	$ 0.98
Anti-dilutive shares (in shares)	764,505	375,428	693,898	291,236

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)					1 Months Ended	3 Months Ended		9 Months Ended		121 Months Ended	164 Months Ended	180 Months Ended
	Apr. 05, 2022	Dec. 10, 2021	Nov. 10, 2020	May 15, 2020	Nov. 03, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2021	Mar. 13, 2020	Mar. 05, 2019	May 16, 2018
Schedule of Shareholders' Equity [Line Items]
Stock repurchase program, authorized amount														$ 20,000,000	$ 20,000,000	$ 15,000,000
Stock repurchased during period (in shares)								156,008	242,115			14,593,422
Aggregate price of shares repurchased since inception								$ 8,921,000	$ 16,551,000		$ 271,931,000
Average price of shares repurchased since inception (per share)								$ 57.18	$ 68.36			$ 18.63
Cash dividends declared per common share (in dollars per share)						$ 0	$ 0	$ 0.19	$ 0.19
Stock repurchased and retired						$ (2,055,000)	$ (4,748,000)	$ (8,921,000)	$ (16,551,000)
Subsequent Event
Schedule of Shareholders' Equity [Line Items]
Stock repurchase program, authorized amount					$ 50,000,000
Stock repurchased and retired (in shares)					86,633
Stock repurchased and retired					$ (4,800,000)
Remaining authorized repurchase amount					$ 8,200,000
BasX, LLC
Schedule of Shareholders' Equity [Line Items]
Equity interests issued		$ 78,000,000
Equity interest issued (in shares)		1,037,000
Equity interests issuable (in dollars per share)		$ 0.004
Contingent liability		$ 60,000,000				$ 60,000,000		$ 60,000,000					$ 66,000,000
Shares issued (in shares)	0							486,268
Dividend Declared
Schedule of Shareholders' Equity [Line Items]
Cash dividends declared per common share (in dollars per share)			$ 0.19	$ 0.19		$ 0.19
Open market
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)								35,479	0	4,240,734
Aggregate price of shares repurchased since inception								$ 2,030,000	$ 0	$ 76,823,000
Average price of shares repurchased since inception (per share)								$ 57.22	$ 0	$ 18.12
401(k)
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)								103,936	220,336			8,308,368
Aggregate price of shares repurchased since inception								$ 5,913,000	$ 15,014,000			$ 171,789,000
Average price of shares repurchased since inception (per share)								$ 56.89	$ 68.14			$ 20.68
Directors and employees
Schedule of Shareholders' Equity [Line Items]
Stock repurchased during period (in shares)								16,593	21,779		2,044,320
Aggregate price of shares repurchased since inception								$ 978,000	$ 1,537,000		$ 23,319,000
Average price of shares repurchased since inception (per share)								$ 58.94	$ 70.57		$ 11.41

New Market Tax Credit (Details)

New Market Tax Credit (Details) - USD ($)		9 Months Ended
	Oct. 24, 2019	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Nov. 24, 2021
Line of Credit Facility [Line Items]
Due to related parties		$ 0		$ 0
Amortization of debt issuance costs		$ 32,000	$ 31,000
Subsidiary
Line of Credit Facility [Line Items]
Due to related parties	$ 22,500,000
Investor
Line of Credit Facility [Line Items]
Loans receivable	$ 15,900,000
Loans receivable, term	25 years
Loans receivable, interest rate	1%
Proceeds from debt	$ 15,900,000
Interest from counterparty	6,300,000
Debt issuance costs	300,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings	$ 23,000,000				$ 100,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	May 02, 2022	Apr. 17, 2022
Commitments and Contingencies Disclosure [Abstract]
Contractual obligation		$ 6.5
Period		18 months
Payments	$ 3.5

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transactions [Abstract]
Sales to affiliates	$ 450	$ 1,560	$ 3,529	$ 2,372
Payments to affiliates	30	$ 23	1,033	$ 153
Due from affiliates	702		702		$ 547
Due to related parties	$ 0		$ 0		$ 0

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Net Sales	$ 242,605	$ 138,571	$ 634,190	$ 398,235
Gross Profit	65,591	36,019	159,031	111,283
Long-lived assets	301,638		301,638		$ 275,036
Goodwill	147,399		147,399		155,848
AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	179,169	122,136	476,517	348,378
AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	30,504	16,435	79,193	49,857
BasX
Segment Reporting Information [Line Items]
Net Sales	32,932	0	78,480	0
Operating Segments | AAON Oklahoma
Segment Reporting Information [Line Items]
Gross Profit	45,643	31,730	111,216	99,725
Long-lived assets	198,737		198,737		183,840
Goodwill	3,229		3,229		3,229
Operating Segments | AAON Coil Products
Segment Reporting Information [Line Items]
Gross Profit	10,564	4,289	26,344	11,558
Long-lived assets	67,151		67,151		62,534
Goodwill	0		0		0
Operating Segments | BasX
Segment Reporting Information [Line Items]
Gross Profit	9,384	0	21,471	0
Long-lived assets	35,750		35,750		28,662
Goodwill	144,170		144,170		$ 152,619
Inter-segment | AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	998	817	2,157	2,026
Inter-segment | AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	8,037	5,508	24,047	16,979
Inter-segment | BasX
Segment Reporting Information [Line Items]
Net Sales	61	0	61	0
Segment Reconciling Items | AAON Oklahoma
Segment Reporting Information [Line Items]
Net Sales	179,169	122,136	476,517	348,378
Segment Reconciling Items | AAON Coil Products
Segment Reporting Information [Line Items]
Net Sales	30,504	16,435	79,193	49,857
Segment Reconciling Items | BasX
Segment Reporting Information [Line Items]
Net Sales	32,932	0	78,480	0
Consolidation, Eliminations
Segment Reporting Information [Line Items]
Net Sales	$ (9,096)	$ (6,325)	$ (26,265)	$ (19,005)